Bedard Corporation reported net income of $445,050 in 2020 and had 198,000 shares of common stock outstanding throughout the year. Also outstanding all year were 45,000 options to purchase common stock at $12 per share. The average market price of the stock during the year was $15. Required:
Compute diluted earnings per share.

$2.35

Explanation:

Convertible option = Total options available - [Total options available*Purchase price per share / Average market price per share]

Convertible option = 45,000 - [45,000*12/15]

Convertible option = 45,000 - 36,000

Convertible option = 9,000 shares

Weighted average number of shares = Common stock outstanding - Convertible option

Weighted average number of shares = 198,000 - 9,000

Weighted average number of shares = 189,000

Diluted earnings per share = Net income attributable to common stockholders / Weighted average number of shares

Diluted earnings per share = $445,050 / 189,000 shares

Diluted earnings per share = $2.354761905

Diluted earnings per share = $2.35

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

3rd the reason why is because of management and leadership