Chapter 16: dilutive securities 1. ABC Corp has net income of $900,000. ABC has 100,000 shares of cumulative preferred stock outstanding, of which it has declared (but not yet paid) a $0.20/share dividend. ABC began the year with 2,000,000 common shares outstanding. On June 30, it issued 100,000 additional shares. On November 1, it repurchased 90,000 shares. Calculate ABC's basic EPS. Round to 3 digits (50.000). Show work for both numerator and denominator. 2. GHI Corp has net income of $1,300,000. No preferred stock. The weighted average common shares outstanding during the year was 2,200,000 shares. No convertible bonds outstanding. However, GHI has stock options and warrants outstanding, and would translate into an additional 300,000 shares of common stock. (Note: 100,000 shares have vested and are exercisable, while 200,000 shares have not vested yet.) The average exercise price of these options/warrants is $20/share, while the average market price during the year was $24. Using the treasury stock method, what is GHI's diluted EPS? Round to 3 digits (80.000).