Throughout 2010 cassies company has outstanding 100000, Finance Basics

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Throughout 2010 cassies company has outstanding 100000

Question: Throughout 2010 Cassie's Company has outstanding 100,000 shares of Common Stock and $500,000 in 6% debentures convertible into 10 shares for each $1,000 bond. Net Income for the year is $200,000. The tax rate is 34%.

Required: 1. Compute basic earnings per share.

2. Compute diluted earnings per share.

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Finance Basics: Throughout 2010 cassies company has outstanding 100000

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Finance Basics: Throughout 2010 cassies company has outstanding 100000

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