Earnings Per Share Question 1 Year 1: Net income is $100,000 with 1,000,000 shares issued and outstanding for the entire year. Year 2: 200,000 shares issued on April 1. A 2-for-1 stock split on June 1 Net income is $184,000 Provide the EPS reported on the year 1 financial statements Provide the EPS reported for year 1 and year 2 on the year 2 comparative financial statements Question 2 Net income $500,000 Weighted average number of common share 20,000 Options: 1,000 options; strike price $40/ share; market price $50/ share Convertible bonds: $100,000; rate 7%; tax rate 20%; converts to 300 shares. Calculate diluted earnings per share. Calculate diluted earnings per share if the bonds paid 12%