On December 31, 2014, Iron Eagle Company has: $150 million in net income (after preferred...
90.2K
Verified Solution
Link Copied!
Question
Accounting
On December 31, 2014, Iron Eagle Company has: $150 million in net income (after preferred dividends) 20 million basic weighted average shares outstanding 5M stock options (assume 0$ exercise price) $100 million convertible preferred stock, convertible into 2 million shares and paying a 10% dividend Assuming conversion of the preferred stock and the exercise of all 5M stock options for the purpose of calculating diluted EPS, calculate Basic EPS and Diluted EPS using the information in the bullets above.
$7.50 basic; $5.56 diluted
$7.50 basic; $5.93 diluted
$7.00 basic; $5.19 diluted
$7.00 basic; $5.60 diluted
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
