Answer:
BEPS Shares = 5,067,500
DEPS Shares = 5,309,500
Explanation:
Basic Earnings per Share (BEPS) = Earnings Attributable to Holders of Common Stock / Weighted Average Number of Common Shares.
<u>Weighted Average Number of Common Shares</u>
Outstanding Common Shares 4,760,000
Additional Shares: April( 9/12 × 198000) 148,500
Additional Shares: April( 4/12 × 477000) 159,000
Total Weighted Average Number of Common Shares 5,067,500
Diluted Earnings per Share (DEPS) =<em>Adjusted </em>Earnings Attributable to Holders of Common Stock /<em>Adjusted</em> Weighted Average Number of Common Shares.
<u><em>Adjusted</em></u><u> Weighted Average Number of Common Shares</u>
Basic Earnings per Share Common Shares 5,067,500
Convertible Bonds ($6,050,000/$1,000 × 40) 242,000
Total Weighted Average Number of Common Shares 5,309,500