Determine diluted earnings per share

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Point 1: On January 1, 2019, Lund SA issued 10-year, €3,000,000 face value, 6% bonds, at par. Each €1,000 bond is convertible into 15 ordinary shares of Lund. Lund's net income in 2020 was €240,000, and its tax rate was 40%. Interest expense on the liability component in 2016 was €210,000. The company had 100,000 ordinary shares outstanding throughout 2019. None of the bonds were converted in 2019.

Instructions

Question a. Compute diluted earnings per share for 2019

Reference no: EM132494866

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