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Earnings Per ShareEarnings Per ShareWarrants to purchase 2 0 , 0 0 0 shares of common stock at $ 3 8 per share were attached

Earnings Per ShareEarnings Per ShareWarrants to purchase 20,000 shares of common stock at $38 per share were attached to the preferred stock at the time of issuance. The warrants, which
on December 31,2024, were outstanding at December 31,2019.
Olmstead's effective income tax rate was 30% for 2018 and 2019.
Required:
Round earnings per share to two decimal places.
Compute the number of shares that should be used for the computation of basic earnings per share for the year ended December 31,2019.
shares
Compute the basic earnings per share for the year ended December 31,2019.
$
per share
Compute the number of shares that should be used for the computation of diluted earnings per share for the year ended December 31,2019.
x shares
Compute the diluted earnings per share for the year ended December 31,2019.
$
x per share
Olmstead Corporation's capital structure is as follows:
The following additional information is available:
On September 1,2019, Olmstead sold 36,000 additional shares of common stock.
Net income for the year ended December 31,2019, was $750,000.
During 2019, Olmstead paid dividends of $3 per share on its nonconvertible preferred stock.
The 8% convertible bonds are convertible into 40 shares of common stock for each $1,000 bond.
of tax) related to the options is $2 per share.
Olmstead's effective income tax rate was 30% for 2018 and 2019.
Required:
Round earnings per share to two decimal places.
Compute the number of shares that should be used for the computation of basic earnings per share for the year ended December 31,2019.
shares
Compute the basic earnings per share for the year ended December 31,2019
$, per share
Compute the number of shares that should be used for the computation of diluted earnings per share for the year ended December 31,2019.
x shares
Compute the diluted earnings per share for the year ended December 31,2019
$1.97 per share
Olmstead Corporation's capital structure is as follows:
December 31
20192018
Outstanding shares of:
Common stock 336,000300,000
Nonconvertible preferred stock 10,00010,000
8% convertible bonds $1,000,000 $1,000,000
The following additional information is available:
On September 1,2019, Olmstead sold 36,000 additional shares of common stock.
Net income for the year ended December 31,2019, was $750,000.
During 2019, Olmstead paid dividends of $3 per share on its nonconvertible preferred stock.
The 8% convertible bonds are convertible into 40 shares of common stock for each $1,000 bond.
Unexercised compensatory share options to purchase 30,000 shares of common stock at $20.50 per share were outstanding at the beginning and end of 2019. The average market price of Olmstead's common stock was $36 per share during 2019. The market price was $33 per share at December 31,2019. The unrecognized compensation cost (net of tax) related to the options is $2 per share.
Warrants to purchase 20,000 shares of common stock at $38 per share were attached to the preferred stock at the time of issuance. The warrants, which expire on December 31,2024, were outstanding at December 31,2019.
Olmstead's effective income tax rate was 30% for 2018 and 2019.
Required:
Round earnings per share to two decimal places.
1. Compute the number of shares that should be used for the computation of basic earnings per share for the year ended December 31,2019.
fill in the blank 1
shares
2. Compute the basic earnings per share for the year ended December 31,2019.
$ fill in the blank 2
per share
3. Compute the number of shares that should be used for the computation of diluted earnings per share for the year ended December 31,2019.
fill in the blank 3
shares
4. Compute the diluted earnings per share for the year ended December 31,2019.
$ fill in the blank 4
per share
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