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25-02-2024
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Carla Vista Corporation earned net income of $360,000 in 2020 and had 102,000 common shares outstanding throughout the year. Also outstanding all year was $780,000 of 10% bonds that are convertible into 18,000 common shares. Carla Vista's tax rate is 35%. Calculate Carla Vista's 2020 diluted earnings per share. For simplicity, ignore the IFRS requirement to record the debt and equity components of the bonds separately. (Round answer to 2 decimal places, eg. 15.25.)
Diluted earnings per share_____$

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