Use the table for the question(s) below.
Consider the following income statement and other information:

-Assuming that Luther has no convertible bonds outstanding,then for the year ending December 31,2006 Luther's diluted earnings per share are closest to:
A) $1.01
B) $1.04
C) $1.53
D) $3.92

Question

Use the table for the question(s) below.
Consider the following income statement and other information:
 
-Assuming that Luther has no convertible bonds outstanding,then for the year ending December 31,2006 Luther's diluted earnings per share are closest to:
A) $1.01 
B) $1.04 
C) $1.53 
D) $3.92

Quizplus · Accepted Answer

A) Diluted EPS = Net Income / (shares outstanding + options contracts outstanding + shares possible from convertible bonds outstanding) = 10.6 / (10.2 + 0.3 + 0.0) = $1.01

Use the Table for the Question(s) Below