Question : 21.Earnings per share with convertibles (LO19-5) Myers Drugs Inc. has : 1553919
21.Earnings per share with convertibles (LO19-5) Myers Drugs Inc. has 1.20 million shares of stock outstanding. Earnings after taxes are $9 million. Myers also has warrants outstanding that allow the holder to buy 100,000 shares of stock at $15 per share. The stock is currently selling for $50 per share.
a.Compute basic earnings per share.
b.Compute diluted earnings per share considering the possible impact of the warrants. Use the following formula: