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Name On January 1, 2013 Myco Corporation had the following securities outstanding: SI ,000,000, 5% cumulative convertible prefered shares, SSO par, each share is convertible

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Name On January 1, 2013 Myco Corporation had the following securities outstanding: SI ,000,000, 5% cumulative convertible prefered shares, SSO par, each share is convertible into 2 shares of common stock. 7% convertible bonds, $2,000,000 face value issued at par ($1,000) per bond. Each bond is convertible into 30 shares of common stock. $6,000,000 common stock, S10 par value Additional information: a. On April 1, 2013, Myco purchased 100,000 shares of its common stock as treasury stock. b. June 30, 2013, Myco issued a 4% stock dividend c. On October 31, 2013, 50,000 shares of treasury stock were sold. d. Common stock options outstanding as of 12/31/12 and exercisable in 2013 to purchase 40,000 shares at an exercise price of $30. The market price of the stock peaked on October 31, 2013 at $50 and on December 31, 2013 the market price of the stock closed at $30; the average market price of stock during 2013 was $40. c. f Net income for the year ended December 31, 2013 was $1,500,000. g. The income tax rate for 2013was 40%. Required: n the space provided below, compute Myco's basic earnings per share for the year ended December 31, 2013, 2. On the next page compute Myco's diluted earnings per share for the year ended December 31, 2013, When computing diluted EPS, do not weight any assumed conversion of stock options, convertible Note: preferred stock, and convertible bonds for stock dividends declared during the year. In other words, use the same format reflected in the solutions to the Exercises and Problems assigned per the syllabus. Reminder: You must show your calculations, ie, how you arrived at each number. You will receive zero points for any number you do support with calculations. Providing the corect answer does not ensure that you will receive credit for your answer if you do not show your work (i.e, how you arrived at your answer). Please make sure you label your answers. Be neat and organized so that I can follow your work and write neatly so that I carn read and understand your calculations. Important: I must be able to read your handwriting, if I cannot read your bandwriting you will not receive credit for your answer (this includes writing too small), and your answer will be marked wrong sic ts

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