Question
1)Gamma reported $600,000 net income for the year with 100,000 common shares outstanding all year. It also had 50,000 shares of $100 par, 8% convertible
1)Gamma reported $600,000 net income for the year with 100,000 common shares outstanding all year. It also had 50,000 shares of $100 par, 8% convertible preferred shares outstanding all year. Each preferred share is convertible into 10 shares of common stock. Determine basic and diluted EPS.
2)Alpha reported net income of $500,000 for the year. It has 200,000 shares of common stock outstanding all year. Two years ago the company granted 20,000 stock options that allow employees to purchase shares for $15 each. The company stock has averaged $20 in the market during the year. Compute the basic and diluted EPS.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started