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Compute the basic earnings per share

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DILUTED EARNING PER SHARE, CONVERTIBLE SECURITIES - ABC Corporation has weighted average number of common stock outstanding throughout 2015 of 400,000 shares. In addition, the corporation has $5,000,000 bonds, 6.3%, convertible into 100,000 common stock. During the year 2015, the corporation has net income of $750,000.

Required: Compute the basic earnings per share and the diluted earnings per share. The tax rate is 30%.

Reference no: EM131590508

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