The following information was taken from wicoms financial, Ask an Expert

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The following information was taken from Wicom's financial statements as of December 31, 2006.

a. Calculate book value per share of common stock.

b. Assume that the company also had $1,000,000 worth of convertible bonds. The bonds are convertible at one $1,000 bond into 150 shares of stock. There are also stock options to buy 120,000 shares at a price of $5 per share. The stock is currently trading at $30 per share.

Recalculate your answer to part a) taking into account dilutive effects of the above.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91026918

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