Calculating EPS with Restricted Stock

StarStruck Inc. granted 750 shares of restricted stock (common shares, $1 par) to its president on January 1, when the stock was trading at $40 per share. Net income for the year was $400,000 and 60,000 shares were outstanding throughout the year. On average, the fair value of common shares during the year was $40 per share. The restricted shares vest after 3 years if the president remains with the company.

Required

a. Compute basic EPS.

b. Compute diluted EPS.

• Note: Round weighted average common shares outstanding to the nearest whole number.
• Note: Enter the earnings per share amounts in dollars and cents, rounded to the nearest penny.

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