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Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net...
Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net income (exclusive of any investment income) of $576,000. Primus has 100,000 shares of common stock outstanding. Sonston reports net income of $176,000 for the period with 40,000 shares of common stock outstanding. Sonston also has 10,000 stock warrants outstanding that allow the holder to acquire shares at $12.00 per share. The value of this stock was $24 per share throughout the year. Primus owns 3,000 of these warrants.
What amount should Primus report for diluted earnings per share? (Round your intermediate percentage value to the nearest whole number and the final answer to 2 decimal places.)
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ekkarill92 answered 1 year agoRelated Solutions
Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net...
Primus, Inc., owns all outstanding stock of Sonston, Inc. For
the current year, Primus reports net income (exclusive of any
investment income) of $632,000. Primus has 100,000 shares of common
stock outstanding. Sonston reports net income of $232,000 for the
period with 50,000 shares of common stock outstanding. Sonston also
has 10,000 stock warrants outstanding that allow the holder to
acquire shares at $13.50 per share. The value of this stock was $27
per share throughout the year. Primus owns...
Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net...
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the current year, Primus reports net income (exclusive of any
investment income) of $528,000. Primus has 50,000 shares of common
stock outstanding. Sonston reports net income of $128,000 for the
period with 40,000 shares of common stock outstanding. Sonston also
has 5,000 stock warrants outstanding that allow the holder to
acquire shares at $14.00 per share. The value of this stock was $28
per share throughout the year. Primus owns...
Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net...
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