3 Question 6 (11 marks) On 1 January 2020. Sal Limited had 1 200,000 ordinary shares outstanding It also had 100,000 shares of 9%, 510 par, non-cumulative preference shares outstanding for the whole year of 2020 Salt Limited declared and paid preference share dividend in 2020 During 2020, the company had the following transactions 1 On 1 February 2020 the company issued 150,000 new shares for cash 2 On 1 September 2020 the company purchased 600,000 of its own outstanding shares Net income for 2020 was $340,000 Required: a. Calculate the weighted average number of ordinary shares outstanding in 2020. (4 marks) b. Calculate the basic earnings per share for 2020 (rounded to two decimals) 3 marks) c. As at 31 December 2020, Salt Limited has 100,000 share options outstanding Each option can be exercised for one ordinary share at an exercise price of $15. The average market price for Salt Limited ordinary shares in 2020 is $40 per share. Calculate the diluted earnings per share for 2020 (rounded to two decimals - (4 marks)