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  3. stober corporation had 8 million shares of common

Stober Corporation had 8 million shares of common stock outstanding during the current calendar year....

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Accounting

Stober Corporation had 8 million shares of common stock outstanding during the current calendar year. On July 1, Stober issued ten thousand $1,000 face value, convertible bonds. Each bond is convertible into 50 shares of common stock. The bonds were issued at face amount and pay interest semiannually for 20 years. They have a stated rate of 12%. Stober had income before tax of $24 million and a net income of $18 million. Stober would report the following EPS data (rounded):
Basic EPS Diluted EPS
a. $ 2.25 $ 2.24
b. $ 2.25 n/a antidilutive
c. $ 2.25 $ 2.16
d. $ 2.25 $ 2.12

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