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Fennel, Inc., had 350,000 shares of common stock issued and outstanding at January 1. On April 1, an additional 50,000 shares of common stock were

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Fennel, Inc., had 350,000 shares of common stock issued and outstanding at January 1. On April 1, an additional 50,000 shares of common stock were issued for cash. On November I. Fennel purchased 18,000 shares of its own stock for $22 each, anticipating an upcoming exercise of options. Fennel had two potentially dillutive securitics: a) 20,000 shares of 5% convertible, cumulative $100 par value preferred stock were outstanding all year. Each share of preferred stock is convertible into four shares of common stock. b) Fennel had $1,000,000 of 6% convertible bonds. Bond interest expense each year is decreased by $1,000 amortization of the premium. Each $1,000 bond is convertible into 30 shares of common stock. Fennel also had unexercised stock options outstanding all year to purchase 40,000 shares of common stock at $15 per share. The market price of the common stock was $23 at the end of the year and the average price during the year was $20. If net income is $950,900, and the tax rate is 21%, What will Fennel report as basic and diluted earnings per share for the year ended December 31 ? Fennel, Inc., had 350,000 shares of common stock issued and outstanding at January 1. On April 1, an additional 50,000 shares of common stock were issued for cash. On November I. Fennel purchased 18,000 shares of its own stock for $22 each, anticipating an upcoming exercise of options. Fennel had two potentially dillutive securitics: a) 20,000 shares of 5% convertible, cumulative $100 par value preferred stock were outstanding all year. Each share of preferred stock is convertible into four shares of common stock. b) Fennel had $1,000,000 of 6% convertible bonds. Bond interest expense each year is decreased by $1,000 amortization of the premium. Each $1,000 bond is convertible into 30 shares of common stock. Fennel also had unexercised stock options outstanding all year to purchase 40,000 shares of common stock at $15 per share. The market price of the common stock was $23 at the end of the year and the average price during the year was $20. If net income is $950,900, and the tax rate is 21%, What will Fennel report as basic and diluted earnings per share for the year ended December 31

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