XXY Corporation had 250,000 shares of common stock outstanding at the beginning of the year. XXY issued 80,000 shares of common stock as at July 1. On September 1, the company issued a 30% stock dividend. On November 1, XXY issues 1500 10% bonds convertible into 22 shares of stock each. What is the weighted average number of shares to be used in computing basic and diluted EPS, assuming the convertible bonds are dilutive?

XXY Corporation had 250,000 shares of common stock outstanding at the beginning of the year. XXY issued 80,000 shares of common stock as at July 1. On September 1, the company issued a 30% stock dividend. On November 1, XXY issues 1500 10% bonds convertible into 22 shares of stock each. What is the weighted average number of shares to be used in computing basic and diluted EPS, assuming the convertible bonds are dilutive?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 5MCQ

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