Question
During 2014, Fit Inc. had 500,000 shares of common stock and 50,000 shares of 6% cumulative preferred stock outstanding. The non-convertible preferred stock has a
During 2014, Fit Inc. had 500,000 shares of common stock and 50,000 shares of 6% cumulative preferred stock outstanding.
The non-convertible preferred stock has a par value of $100 per share.
Fit did not declare or pay any dividends during 2014.
Fit's net income for the year ended December 31, 2014, was $2.5 million.
The income tax rate is 40%.
Fit granted 10,000 stock options to its executives on January 1 of this year. Each option gives its holder the right to buy 20 shares of common stock at an exercise price of $29 per share.
The market price of the common stock averaged $30 per share during 2014, and the stock price on December 31, 2014 was $32 per share. .
A)What is the basic earnings per share reported by Fit Inc. for 2014 ?
B)What is the diluted earnings per share reported by Fit Inc. for 2014?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started