What is the company fully diluted earnings per share

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Problem 1: XYZ Inc earned net income of $286,970 during the current fiscal year and had 95,660 common shares outstanding throughout the year. Also outstanding all year were $765,250 carrying value of 9.37%-coupon bonds convertible into 24,860 common shares in total. The company's tax rate is 24.95%. Ignoring the IFRS requirement to record the debt and equity components of the bonds separately, what is the company's fully diluted earnings per share?

Option 1: $2.62

Option 2: $2.69

Option 3: $2.76

Option 4: $2.83

Option 5: $2.90

Reference no: EM132829348

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