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During 2019, Pacific Travel Inc. reported net income of $115,600 and had 200,000 shares of common stock outstanding for the entire year. The company had
During 2019, Pacific Travel Inc. reported net income of $115,600 and had 200,000 shares of common stock outstanding for the entire year. The company had 1,000 shares of 10%, $100 par value convertible preferred stock, convertible into 40 shares each, outstanding for the entire year. It also had 600, 7%, $1000 par value convertible bonds, convertible into 100 shares each, outstanding for the entire year. Finally, it had 10,000 stock options outstanding during the year. Each option is convertible into one share of stock at $15 per share. The average market price of the stock for the year was $20. What are Pacific Travel Inc.s basic and diluted EPS? (Assume a 40% tax rate)
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