(a) At December 31, 2010, Risk Company had 500,000 shares of common stock outstanding. Risk sold 50,000 shares on October 1, 2011. Net income for 2011 was $2,417,875. The tax rate was 30%. In addition, Risk had the following debt and equity securities on its books on December 31, 2011:

18,000 shares of $100 par, 12% cumulative preferred stock

28,000 shares of $100 par, 10% cumulative preferred stock, par $100, sold at 110. Each share of preferred stock is convertible into 2 shares of common stock.

$2,000,000 face value of 9% bonds sold at par

$3,000,000 face value of 70% convertible bonds sold to yield 8%. Unamortized bond discount is $100,000 at December 31, 2011. Each $1,000 bond is convertible into 20 shares of common stock.

Options to purchase 10,000 shares of common stock were issued on May 1, 2011. Exercise price is $30 per share. Market value at the date of option was $29. Average market value from May 1 to December 31, 2011, was $40. Compute the earnings per share amounts for the year ended December 31, 2011. Calculate the weighted average number of shares for the following

Date	Shares Changes	Shares Outstanding
1 Jan 07	Beginning balance	100,000
1 Apr 07	20,000 shares issued	120,000
1 Jun 07	50% stock dividend	180,000
1 Oct 07	50,000 shares issued	230,000
31 Dec - 07	Year-end balance	230,000