Mirrlees Corp. has 10,000 6.25% bonds convertible into 40 shares per $1000 bond.

Mirrlees Corp. has 10,000 6.25% bonds convertible into 40 shares per $1000 bond. Mirrlees has 600,000 outstanding shares. Mirlees has a tax rate of 40%. The average Aa bond yield at time of issue was 10%. Compute basic earnings per share if after-tax earnings are $750,000. Answer $0.71 $1.25 $1.33 $1.51
555673_FINMirrlees Corp. has 10,000 6.25% bonds convertible into 40 shares per $1000 bond. Mirrlees has 600,000 outstanding shares. Mirlees has a tax rate of 40%. The average Aa bond yield at time…