Kobe Entity is calculating diluted EPS. Kobe's basic EPS is ¥5.00 (¥5 million net income attributed to common shareholders divided by 1 million common shares). Kobe's average share price throughout the year is $11 per share. The tax rate is 25% Kobe has several potentially dilutive securities as follows:
a. 50,000 options that were issued on April 1 at a strike price of $8. They can be converted into 50,000 common shares.
b. 80,000 warrants outstanding all year that can be converted into 80,000 common shares. The strike price is $12.
c. ¥3 million in 6% cumulative preferred shares convertible into 32,800 common shares outstanding all year with no dividends in arrears.
d. ¥5 million in 8% convertible bonds outstanding all year. Each has a face value of ¥1,000 and is convertible into 10 common shares.
Calculate Kobe's diluted EPS.

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The Answer of Kobe Entity is calculating diluted EPS. Kobe's basic EPS is ¥5.00 (¥5 million net income attributed to common shareholders divided by 1 million common shares). Kobe's average share price throughout the year is $11 per share. The tax rate is 25% Kobe has several potentially dilutive securities as follows:
a. 50,000 options that were issued on April 1 at a strike price of $8. They can be converted into 50,000 common shares.
b. 80,000 warrants outstanding all year that can be converted into 80,000 common shares. The strike price is $12.
c. ¥3 million in 6% cumulative preferred shares convertible into 32,800 common shares outstanding all year with no dividends in arrears.
d. ¥5 million in 8% convertible bonds outstanding all year. Each has a face value of ¥1,000 and is convertible into 10 common shares.
Calculate Kobe's diluted EPS.

Kobe Entity Is Calculating Diluted EPS