Basic and diluted eps the following information was

Basic and Diluted EPS
 
 
 
 
 
 
 
 

The following information was taken from the books and records of Ludwick, Inc.:

 
 
 
 
 
 
 
 

1.   Net Income                                              $ 420,000

 
 
 
 
 
 
 
 

2.   Capital Structure:
 
 
 
 
 
 
 
 

a.   Convertible 6% bonds. Each of the 300, $1,000 bonds is convertible into 50 shares of common stock at the present date and for the next 10 years.                                420,000

 
 
 
 
 
 
 
 

b.   $ 10 par common stock, 200,000 shares issued and outstanding during the entire year.                                  2,000,000

 
 
 
 
 
 
 
 

c.   Stock warrants outstanding to buy 16,000 shares of common stock at $20 per share

 
 
 
 
 
 
 
 

3.   Other information:
 
 
 
 
 
 
 
 

a.   Bonds converted during the year                                                   None

 
 
 
 
 
 
 
 

b.   Income Tax Rate                                                                             30%

 
 
 
 
 
 
 
 

c.   Convertible debt was outstanding the entire year
 
 
 
 
 
 
 
 

d.   Avg Market Price per share of common stock during the year        $32

 
 
 
 
 
 
 
 

e.   Warrants were outstanding the entire year
 
 
 
 
 
 
 
 

f.    Warrants exercised during the year                                               None

 
 
 
 
 
 
 
 

Compute Basic and Diluted Earnings Per Share. Use the following format: