Homework Answers
Basic Earning Per Share = Earning After Tax / No. of Shares
= $9 million / 2.5 million
Basic Earning Per Share = $3.60
Diluted Earning Per Share = Earning After Tax / (No. of Shares + Net Increase in shares from warrants)
= $9 million / (2.5 million + 0.1 million)
Basic Earning Per Share = $3.46
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