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Compute basic earnings per share

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Reference no: EM131108258

1. (EPS with Warrants) Worth Corporation earned $260,000 during a period when it had an average of 100,000 shares of common stock outstanding. The common stock sold at an average market price of $15 per share during the period. Also outstanding were 30,000 warrants that could be exercised to purchase one share of common stock for $10 for each warrant exercised.

(a) Are the warrants dilutive?
(b) Compute basic earnings per share.
(c) Compute diluted earnings per share. 

Reference no: EM131108258

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