Calculate Diluted Earnings Per Share
October 18, 2011 Leave a comment
Rockland Corporation earned net income of $439,200 in 2010 and had 100,000 shares of common stock outstanding throughout the year. Also outstanding all year was $1,171,200 of 10% bonds, which are convertible into 23,424 shares of common. Rockland’s tax rate is 40 percent. Compute Rockland’s 2010 diluted earnings per share.
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