On January 2, 2019, Shank Co. issued at par $300,000 of 9% convertible bonds. Each $1,000 bond is convertible into 60 shares. No bonds were converted during 2019. Shank had 100,000 shares of common stock outstanding during 2019. Shank 's 2019 net income was $340,000 and the income tax rate was 30%. Shank's diluted earnings per share for 2019 would be (rounded to the nearest penny) Group of answer choices $3.04. $2.19. $3.26. $3.40. $2.29

Shank's diluted earnings per share for 2019 would be $3.04.

Explanation:

This can be calculated as follows:

Amount of increase in net income if bonds are converted =  Total value of convertible bonds * Bond rate * (100% - Tax rate) = $300,000 * 9% * (100% - 30%) = $18,900

Total earnings available to Equity Shareholders = Net income + Amount of increase in net income if bonds are converted = $340,000 +  $18,900 = $358,900

Number of common shares obtainable from convertible bonds = (Total value of convertible bonds / $1,000) * 60 = ($300,000 / $1,000) * 60 = 18,000

Total number of shares outstanding = Number of shares of common stock outstanding during 2019 + Number of common shares obtainable from convertible bonds = 100,000 + 18,000 = 118,000

Diluted earnings per share = Total earnings available to Equity Shareholders / Total number of shares outstanding = $358,900 / 118,000 = 3.04

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi