fenil 13 April 2020 at 13:26 PM

 Ansel Corporation had the following financial information for 20X5. • Net income after tax was $1,500,000 and the company's average income tax rate was 30%. • 1 million shares of common stock were outstanding at the beginning of the year. • 10,000, 6% convertible bonds with each bond convertible into 40 shares of common stock were issued at par on June 30, 20X5. Each bond's face value is $1,000, so the total face value of the issue is $10,000,000. • The firm had 100,000 warrants outstanding all year with an exercise price of $26 per share. • The average stock price for the period is $20, and the ending stock price is $30. How many shares of common stock should Ansel Corp use to calculate diluted earnings per share? a) 1,200,000 b) 1,400,000 c) 1,225,000 d) 1,325,000