Calculating EPS and Multiple Securities

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

Common stock, $10 par; authorized 200,000 shares: issued and outstanding throughout the year,
100,000 shares			$1,000,000
Preferred stock, $50 par, 7%, cumulative, convertible into common stock, share for share;
authorized, 20,000 shares; issued and outstanding throughout year, 4,000 shares			200,000
Contributed capital in excess of par, common stock			160,000
Retained earnings (no dividends declared during the year)			940,000
Bonds payable, 10% nonconvertible, issued at par four years prior			300,000
Net income			264,000
Stock options outstanding (all year for 20,000 shares of common stock at $15 per share)
Income tax rate, 25%
Average market price of the common stock during the year, $25 per share

Required

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

Simple structureComplex structure

b. Compute the required EPS amounts.

• Note: Enter the earnings per share amounts in dollars and cents, rounded to the nearest penny.
• 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
Diluted EPS