Shady Corp.has 30,000,6% bonds,convertible into 50 shares per bond.Each bond has a par value of $1,000.Trusty has 1,000,000 outstanding shares paying a $0.75 annual dividend.Earnings were $900,000 after paying $600,000 in taxes.Compute the diluted EPS.
A) $0.79
B) $1.08
C) $0.90
D) $0.36
Correct Answer:
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