Multiple Choice
FGH had 5,000 common shares outstanding on December 31, 2013.An additional 1,000 common shares were issued on April 1, 2014, and 500 more on July 1, 2014.On October 1, 2014, FGH issued 10, $1,000 maturity value, 7 percent convertible bonds.Each bond is convertible into 40 common shares.No bonds were converted into common shares in 2014.What was the number of shares that should be used to compute basic earnings per share and diluted earnings per share, respectively, for the year ended December 31, 2014 (ignore anti-dilution) ?
A) 5,750 and 5,950 shares
B) 6,000 and 6,100 shares
C) 5,750 and 6,150 shares
D) 6,000 and 6,400 shares
Correct Answer:
Verified
Correct Answer:
Verified
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