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Santana Corporation has 400,000 shares of common stock outstanding throughout 2018. In addition, the corporation has 5,000, 2
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Answer #1
a) Primary earnings per share = Net Income / No. of common stocks outstanding
= $ 900000 / 400000
= $      2.25
b) Diluted earnings per share shall also be $ 2.25 since convertible bonds are yet to be converted, therefore
common stocks outstanding is still 400000 shares
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