10.00 points On December 31, 2010, DW Steel Corporation had 600,000 shares of ordinary shares and 300,000 shares of 8%, noncumulative, nonconvertible preference shares ssued and outstanding DW issued a 4% bonus issue on ordinary shares on May 15 and paid cash dividends of $400,000 and $75,000 to ordinary and preference shareholders, respectively, on December 15, 2011 On February 28, 2011, DW issued 60,000 ordinary shares. Also, as a part of a 2010 agreement for the uisition of Merill Cable Company, another 23,000 shares (already adjusted for the bonus issue) are to be issued to former Merrill shareholders on December 31, 2012, if Menil's 2012 net income is at least $500,000. In 2011, Memil's net income was $630,000 In keeping with its long-term share repurchase plan, 2,000 shares were retired on Jully 1. DWs net income for the year ended December 31, 2011, was $2.100000 The income tax rate is 20% As part of an incentive compensation plan, DW granted incentive share options to division managers at December 31 of the current and each of the previous two years. Each option permits its holder to buy one share of ordinary shares at an exercise price equal to market value at the date of grant and can be exercised one year from that date. Information concerning the number of options granted and ordinary shares prices follows Options GrantedShare Price Granted (adjusted for the bonus issue S 24 s 33 s 32 8,000 3,000 6,500 December 31, 2009 December 31, 2010 December 31, 2011 The market price of the ordinary shares averaged $32 per share during 2011 On July 12, 2009, DW issued $800,000 of convertible bonds. Each $1,000 bond is convertible into 30 ordinary shares (adjusted for the bonus issue) On January 1, 2011, the unam component was s 761,570. The effective nterest rate was 12% Required: Compute DW's basic and diluted earnings per share for the year ended December 31, 2011. (Round your answers to 2 decimal places. Omit the " sign in your response.) DWs basic earnings per share s dluted earnings per share References Learning of EPS Learning Objective: 19-06 Differentiate the effect on EPS of the issue of new shares, a bonus issue or share split, and the reacquisition of shares Worksheet Learning Learning Objective: 19-07 Describe how Learning Objective: 19-04 Distinguish between a simple and a preference dividends affect the calculation of complex capital structure. EPS 11 LenovO