What would the diluted earnings per share be

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Question - At December 31, 2019, ABC Ltd. had 90,000 common shares outstanding and no preferred shares issued. On September 30, 2020, an additional 300,000 common shares were issued. In addition, ABC had $ 10,000,000 (par value) 6% convertible bonds outstanding at December 31, 2019, which are convertible into 600,000 common shares. No bonds were converted in 2020. Net income for calendar 2020 was $ 3,750,000. Assuming the income tax rate is 20%, what would the diluted earnings per share be for 2020?

Reference no: EM132915826

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