What will be the dilutive EPS of Wonderful incorporation

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Question - Wonderful Inc. issued to its existing common stockholders 2000 warrants. Each warrant entitles the stockholder to purchase 3 shares of common stock at a price of $4 each. The common stock of the company is selling in the stock exchange at $6 each. If Wonderful has 20,000 shares of common stock outstanding throughout the year and its Net Income is $8,000 after paying the preferred dividends, what will be the dilutive EPS of Wonderful incorporation under treasury stock method?

a. $4

b. $0.40

c. $0.30

d. $0.36

Reference no: EM132455270

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