Compute the weighted average number of shares to be used in computing earnings per share for 2013.

Ex. 3Earnings per share.

Santana Corporation has 400,000 shares of common stock outstanding throughout 2013. In addition, the corporation has 5,000, 20-year, 9% bonds issued at par in 2011. Each $1,000 bond is convertible into 20 shares of common stock after 9/23/14. During the year 2013, the corporation earned $900,000 after deducting all expenses. The tax rate was 30%.