单选题
An analyst gathered the following data about a company:
1000 common shares are outstanding(no change during the year).
Net income is $ 5000.
The company paid $ 500 in
preferred dividends.
The company paid $ 600 in common
dividends.
The average market price of their common stock is $
60 for the year.
The company had 100 warrants(for one share
each) outstanding for the entire year exercisable at $50.
The
company' s diluted earnings per share is closest to:
- A. $3.83.
- B. $4.42.
- C. $4.55.
【正确答案】
B
【答案解析】The warrants are dilutive because their exercise price is less than the average market price.
Shares issued to warrant holders = 100
Warrants generate cash of 100 (50) = $ 5000
Repurchased shares=[*]=83
Net new shares created = 100-83 = 17
Ahematively, [*]×100≈17
[*]
Diluted EPS=[*]=$ 4.42