Reference no: EM132710399
Handy Hanson Inc. (HHI) has a December 31 year end. Select information for the currentyear (20X6) is as follows:
After-tax profit for the year was $535,000.
HHI's corporate tax rate is 30%.
HHI had 100,000 common shares outstanding during the year.
HHI had $3,100,000 in 10% convertible bonds. Each $1,000 bond is convertible into 15 common shares.
HHI had $900,000, 5% cumulative preference shares.
Incremental
No dividends were declared or paid in the year.
Problem 1: What is Hanson's diluted earnings per share on December 31, 20X6?
a) $4.67
b) $4.83
c) $4.90
d) $5.13
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