Calculate basic earnings per share for grouper co

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Reference no: EM132704300

On December 31, 2021, Grouper Co. had 189,500 common shares outstanding. The company also had outstanding a convertible bond with a face value of $115,000 that had been issued in 2015. The bond paid 6% interest per year and was convertible to 2,300 common shares. Grouper Co. had net income for 2021 of $776,950 and was subject to a 30% income tax rate. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately).

Problem 1: Calculate basic earnings per share.

Problem 2: A call option is a right to

a) sell the underlying security.
b) buy the underlying security.
c) force another party to buy the underlying security.
d) repurchase a previously sold underlying security.

Reference no: EM132704300

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