Determine the company diluted EPS

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Question - Diluted EPS: An analyst gathered the following information about a company:

100,000 common shares outstanding from the beginning of the year.

Earnings of 125,000

1,000, 7%, $1,000 par bonds convertible into 25 shares each, outstanding as of the beginning of the year

Tax rate of 40%

Required - Determine the company's diluted EPS?

A. $1.00

B. $1.34

C. $1.25

D. $1.22

Reference no: EM132834498

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