The following data for the Dojo Company for 2012 is available: Net Income (after

Question

The following data for the Dojo Company for 2012 is available:
Net Income (after taxes) $2,100,000
Tax Rate 40%

Transactions in Common Shares Change Cumulative
Jan. 1, 2012, Beginning number 700,000
Mar. 1, 2012, Purchase of treasury shares (60,000) 640,000
June 1, 2012, Stock split 2-1 640,000 1,280,000
Nov. 1, 2012, Issuance of shares 120,000 1,400,000

8% Cumulative Convertible Preferred Stock
Sold at par in 2010, convertible into 200,000 shares of common
(adjusted for split). $1,000,000

Stock Options
Exercisable at the option price of $25 per share. Average
market price in 2012, $30 (market price and option price
adjusted for split). 60,000 shares

8% Bonds Payable
Issued 1,000 nonconvertible debenture bonds at 99, 8% paid annually
on 12/31, $1000 maturity (each bond), issued on 1/1/12.


what is the diluted earnings per share?

Explanation / Answer

the diluted earning must be 800000$. Because when we calculate all the things nd take average it comes800000$

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