Reference no: EM132747960

Question: For the fiscal year ended December 31, 2019, Nicholas Corporation reported net income of $600,000 and had 900,000 common shares outstanding from the beginning to the end of the year. On May 1, 2019, Nicholas issued 5% convertible bonds. Each $1,000 bond is convertible into 120 common shares. The total proceeds were $1,000,000 at par and were recognized in the liability and equity components using the residual value method, measuring the liability component first, at the present value of the bonds, all discounted at 8%, (the interest rate that applies to similar straight bonds). At the time of issuance, the present value of the bond was $922,685. Calculate Nicholas Corporation's basic and diluted Earnings per share, assuming the corporation experiences a 30% tax rate. Round your answer to two decimal places