Compute basic earnings per share

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Reference no: EM13776441

ABC, Inc. had 50,000 shares of common stocks outstanding at January 1, 2013. On March 31,2013, an additional 12,000 shares were sold for cash. Megan also had $4,000,000 of 6% convertible bonds outstanding throughout the year. The bonds are convertible into 40,000 shars of common stock. Net income for the year was $350,000. The tax rate is 35%.

Required: Compute basic earnings per share (rounded to 2 decimal places for the year ended December 31, 2013)

Reference no: EM13776441

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