question archive Jet Corporation had 12
Jet Corporation had 12
Subject:AccountingPrice: Bought3
Jet Corporation had 12.0 million shares of common stock outstanding during the current calendar year. On July 1, Jet issued eighteen thousand $1,000 face value, convertible bonds. Each bond is convertible into 50 shares of common stock. The bonds were issued at face amount and pay interest semiannuallly for 20 years. They have a stated rate of 10%. Jet had income before tax of $36.0 million and a net income of $25 million. Jet would report the following EPS data (rounded):
Basic EPS Diluted EPS
a. $ 2.08 $ 2.06
b. $ 2.08 n/a antidilutive
c. $ 2.08 $ 1.94
d. $ 2.08 $ 1.88
