basic和diluted的计算

问题如下：

• Net income of $32 million

• Weighted average number of common shares outstanding of 4.5 million

• $15 million of 12% convertible bonds, convertible into 50,000 shares

• 200,000 options with an exercise price of $50 per share

• Average market price of $80 per share during the year

• Tax rate of 30%

The company’s diluted EPS is closest to:

选项：

A.$6.81.

B.$6.99.

C.$7.19.

解释：

• describe how earnings per share is calculated and calculate and interpret a company’s basic and diluted earnings per share for companies with simple and complex capital structures including those with antidilutive securities

1. Incorrect. It correctly included only the options in the diluted EPS calculation, but failed to allow for the hypothetical buyback of shares at the average price.

   

2. Correct. Basic EPS = (Net income – Preferred dividends)/Weighted average number of shares outstanding. The company’s structure includes two potentially dilutive securities: convertible debt (which may be dilutive or anti-dilutive) and options (which are always dilutive). Diluted EPS includes the effects of the dilutive securities and must be less than basic EPS.

   Determine whether the convertible bonds are dilutive.

   

   Because diluted EPS is greater than basic EPS ($7.31 > $7.11), the convertible bonds are anti-dilutive and must be excluded from the diluted EPS calculation.

   Calculate diluted EPS using only the options.

   

3. Incorrect. $7.19 includes both the convertible bonds and options together in the diluted EPS calculation: $33,260,000/(4,500,000 + 50,000 + 75,000).