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Howat Corporation earned $360,000 during a period when it had an average of 100,000 shares of common stock outstanding. The common stock sold at an average market price of $15 per share during the period. Also outstanding were 15,000 warrants that could be exercised to purchase one share of common stock for $10 for each warrant exercised.
(a) Are the warrants dilutive?
(b) Compute basic earnings per share. (Round answer to 2 decimal places, e. g. $2.55.)
(c) Compute diluted earnings per share.
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Howat Corporation earned $360,000 during a period when it had an average of 100,000 shares of common...
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