Evaluate what diluted earnings per share are

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Problem 1: Shipley Corporation had net income for the year of P480,000 and a weighted average number of ordinary shares outstanding during the period of 200,000 shares. The company has a convertible bond issue outstanding. The bonds were issued four years ago at par (P2,000,000), carry a 7% interest rate, and are convertible into 40,000 shares. The company has a 40% tax rate. Diluted earnings per share are?

Reference no: EM132616788

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