Bramble Corp. purchased Cullumber Company and agreed to give stockholders of Cullumber Company 9300 additional shares in 2020 if Cullumber Company’s net income in 2019 is $505000; in 2018 Cullumber Company’s net income is $525000. Bramble Corp. has net income for 2018 of $456000 and has an average number of common shares outstanding for 2018 of 94000 shares. What should Bramble report as diluted earnings per share for 2018?
Darshita Changed status to publish February 18, 2020
DPS
Diluted earning per share
=(total income –preferred dividend) /(outstanding share + New issue)
=(456,000 -0) / (94,000+9,300)
=456000/103300
=4.41
Diluted earning per share =$4.41
Darshita Changed status to publish February 18, 2020
