Explore BrainMass

Explore BrainMass

    Northeast Company: Diluted earnings per share calculation

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Northeast Company has 200,000 shares of common stock and 50,000 warrants outstanding. Each warrant entitles its owner to buy one share at a price of $20 before 2010. The firm's basic earnings per share is $2.25. What is the firm's diluted earnings per share?

    $1.15
    $1.25
    $1.50
    $1.80
    $2.00

    © BrainMass Inc. brainmass.com June 3, 2020, 9:39 pm ad1c9bdddf
    https://brainmass.com/business/the-time-value-of-money/northeast-company-diluted-earnings-per-share-calculation-192753

    Solution Preview

    Northeast Company has 200,000 shares of common stock and 50,000 warrants outstanding. Each warrant entitles ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer what is the firm's diluted earnings per share.

    $2.19

    ADVERTISEMENT