A$.$ Dunbar Company had $1,000,000$ shares of $$1$ par value common stock outstanding at January $1,2023.$ On July $1,2023,$ the company issued $400,000$ additional shares of common stock. In addition, at December $31,2023,100,000$ shares were issuable upon exercise of executive stock options which require a $$60$ cash payment upon exercise. The average market price during $2018$ was $$75.$

Dunbar Company also has two convertible securities$.$ There are $20,000$ convertible bonds with a face amount of $$1,000,$ interest rate of $7\%$ and convertible into $25$ shares of common stock and $500,000$ shares of $5\%,$ $$50$ par value convertible preferred stock, convertible into $5$ shares each.

During $2023,$ Dunbar Company$$s net income was $$25,000,000$ and all preferred stock dividends were declared and paid. The company$$s tax rate is $30\%.$

B$.$ Harvey Inc. has $8,000,000$ shares of $$1$ par value common stock outstanding at January $1.$ On July $1,$ Harvey repurchased $400,000$ shares at a cost of $$21$ per share. In addition, at December $31,2023,250,000$ shares were issuable upon exercise of executive stock options which an exercise price of $$100$ per share. The average market price of the company$$s stock was $$125$ per share.

Harvey Inc. also has two convertible securities$.$

a$.$ Convertible bonds, $$5,000,000$ face value, $6\%$ interest, convertible into $100,000$ shares of common stock.

b$.50,000$ shares of $$100$ par value convertible preferred stock with a dividend rate of $6\%.$ Each $$100$ par value share is convertible into $10$ shares each.

During $2023,$ Harvey$$s net income was $$7,200,000$ and all preferred stock dividends were declared and paid. The company$$s tax rate is $21\%.$

Instructions

Compute the diluted earnings per share for $2023.$

C$.$ Dun & Harvey Inc. has $10,000,000$ shares of $$1$ par value common stock outstanding at January $1.$ On July $1,$ Dun & Harvey issued $1,200,000$ shares at a cost of $$32$ per share. In addition, at December $31,2023,150,000$ shares were issuable upon exercise of executive stock options, which an exercise price of $$75$ per share. The average market price of the company$$s stock was $$100$ per share.

Dun & Harvey Inc. also has two convertible securities$.$

a$.$ Convertible bonds, $$5,000,000$ face value, $6\%$ interest, convertible into $200,000$ shares of common stock.

b$.10,000$ shares of $$100$ par value convertible preferred stock with a dividend rate of $5\mathrm{.}5\%.$ Each $$100$ par value share is convertible into $20$ shares each.

During $2023,$ Dun & Harvey$$s net income was $$20,800,000$ and all preferred stock dividends were declared and paid. The company$$s tax rate is $20\%.$

D$.$ D & H Inc. has $40,000,000$ shares of $$1$ par value common stock outstanding at January $1.$ On April $1,$ D & H issued $5,000,000$ shares at a cost of $$40$ per share. In addition, at December $31,2023,750,000$ shares were issuable upon exercise of executive stock options which an exercise price of $$40$ per share. The average market price of the company$$s stock was $$50$ per share.

Dun & Harvey Inc. also has two convertible securities$.$

a$.$ Convertible bonds, $$10,000,000$ face value, $6\%$ interest, convertible into $800,000$ shares of common stock.

b$.30,000$ shares of $$100$ par value convertible preferred stock with a dividend rate of $4\mathrm{.}0\%.$ Each $$100$ par value share is convertible into $15$ shares each.

During $2023,$ D & H$$s net income was $$30,700,000$ and all preferred stock dividends were declared and paid. The company$$s tax rate is $20\%.$