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The following information is available about a company with potentially dilutive securities in its capital structure:1. 2011 net income of $32 million.2. Weighted average number of common shares outstanding of 4.5 million.3. $15 million of 12% convertible bonds, convertible into 50,000 shares.4. 200,000 options with an exercise price of $50 per share.5. Average market price of $80 per share during the fiscal year.6. Tax rate of 30%.The company’s diluted EPS is closest to: A:$6.99. B:$7.19. C:$7.31. |
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