Calculate diluted earnings per share

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Reference no: EM131792563

Qusetion: Myers Drugs, Inc., has 2 million shares of stock outstanding. Earnings after taxes are $6 million. Myers also has warrants outstanding that allow the holder to buy 100,000 shares of stock at $15 per share. The stock is currently selling for $50 per share.

a. Compute basic earnings per share.

b. Compute diluted earnings per share considering the possible impact of the warrants.

Reference no: EM131792563

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