On January 2, 2021, Worth Co. issued at par $2,000,000 of 7% convertible bonds. Each...
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On January 2, 2021, Worth Co. issued at par $2,000,000 of 7% convertible bonds. Each $1,000 bond is convertible into 10 shares of common stock. No bonds were converted during 2021. Worth had 200,000 shares of common stock outstanding during 2021. Worths 2021 net income was $900,000 and the income tax rate was 30%. Worths diluted earnings per share for 2021 would be (rounded to the nearest penny):
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