Multiple Choice
On January 2, 2011, Worley Co. issued at par $50,000 of 4 percent bonds convertible, in total, into 5,000 shares of Worley's common stock. No bonds were converted during 2011. Throughout 2011 Worley had 5,000 shares of common stock outstanding. Worley's 2011 net income was $5,000. Worley's income tax rate is 40 percent. No potentially dilutive securities other than the convertible bonds were outstanding during 2011. Worley's diluted earnings per share for 2011 would be
A) $0.58.
B) $0.62.
C) $0.70.
D) $1.16.
Correct Answer:
Verified
Correct Answer:
Verified
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