Calculating EPS and Multiple Securities

At the end of 2020, the records of Wolverine Corporation reflected the following.

Common stock, $10 par; authorized 240,000 shares: issued and outstanding throughout the year,
120,000 shares			$1,200,000
Preferred stock, $50 par, 7%, cumulative, convertible into common stock, share for share;
authorized, 24,000 shares; issued and outstanding throughout year, 4,800 shares			240,000
Contributed capital in excess of par, common stock			192,000
Retained earnings (no dividends declared during the year)			1,128,000
Bonds payable, 10% nonconvertible, issued at par in 2016			360,000
Net income			264,000
Stock options outstanding (all year for 24,000 shares of common stock at $15 per share)
Income tax rate, 25%
Average market price of the common stock during 2020, $25 per share

Required

a. Is this a simple or a complex capital structure?

Answer: Complex structure

b. Compute the required EPS amounts.

• Note: Round earnings per share amounts to two decimal places.
• Note: If an amount is not required, leave the answer blank (zero).

	Net Income Available to Common Stockholders	Weighted Avg. Common Shares Outstanding	Per Share
Basic EPS	Answer	Answer	Answer
Diluted EPS	Answer	Answer	Answer