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Tajik4CPA
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Regular

Joined: 15 Oct 2009
Online Status: Offline
Posts: 238

Posted: 08 Jul 2010 at 16:03 \| IP Logged

Ok got it :)

When bonds are converted think of them as if they were converted at the beginning of the year. So we have 14000 shares outstanding for all year. I made a mistake by including bonds for half year only. That's not correct cause bonds were issued on Jan 1. After that take interest expense and add it back to NI, net of tax. So 7000*(1-0.3)=4900

35000+4900=39900

DEPS=39900/14000=2.85$

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Becker 2009 and Gleim 2010, Wiley 13.0

aimtobeacpa
Major Contributor

Joined: 10 Dec 2009
Online Status: Offline
Posts: 657

Posted: 08 Jul 2010 at 16:09 \| IP Logged

thanks...:)

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