Homework answers / question archive / Sunland Corporation earned $267,000 during a period when it had an average of 100,000 shares of common stock outstanding

Sunland Corporation earned $267,000 during a period when it had an average of 100,000 shares of common stock outstanding

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Sunland Corporation earned $267,000 during a period when it had an average of 100,000 shares of common stock outstanding. The common stock sold at an average market price of $18 per share during the period. Also outstanding were 14,100 warrants that could be exercised to purchase one share of common stock for $12 for each warrant exercised.

 

(a) Are the warrants dilutive?

 

                                                           

No

Yes

 

 

(b) Compute basic earnings per share. (Round answer to 2 decimal places, e.g. $2.55.)

 

Basic earnings per share$ 

 

(c) Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. $2.55.)

 

Diluted earnings per share$