Solution-Compute the diluted earnings per share

Compute the diluted earnings per share

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Reference no: EM133180769

Question - At year-end, Lazy Company had 10,000 ordinary shares and 20,000 convertible preference shares outstanding in addition to 10%, convertible bonds payable in the face amount of P2,000,000.

During the current year, the entity paid dividends of P5 per share on the preference share.

The preference share is convertible into 40,000 ordinary shares. The 9% bonds are convertible into 30,000 ordinary shares.

The net income for the current year was P2,410,000 and the income tax rate is 30%.

Required -

A. Compute the basic earnings per share.

B. Compute the diluted earnings per share.

Reference no: EM133180769

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Compute the diluted earnings per share

Reference no: EM133180769

Reference no: EM133180769

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