Question
On December 31, 2012, Hefner Company had 100,000 shares oF common stockoutstanding and 30,000 shares oF 7%, $100 par, cumulative preFerred stockoutstanding. On ebruary 28,
On December 31, 2012, Hefner Company had 100,000 shares oF common stockoutstanding and 30,000 shares oF 7%, $100 par, cumulative preFerred stockoutstanding. On ebruary 28, 2013, Hefner purchased 24,000 shares oF commonstock on the open market as treasury stock paying $45 per share. Hefner sold 6,000oF the treasury shares on September 30, 2013, For $47 per share. Net income For2013 was $540,000. The income tax rate is 40%. Also outstanding at December 31,2012, were Fully vested incentive stock options giving key personnel the option to buy50,000 common shares at $40. The market price oF the common shares averaged $50during 2013. ive thousand 6% bonds were issued at par on January 1, 2013. Each$1,000 bond is convertible into 125 shares oF common stock. None oF the bonds hadbeen converted by December 31, 2013, and no stock options were exercised duringthe year.
Required:Compute basic and diluted earnings per share (rounded to 2 decimal places)
For Hefner Company For 2013 And for addtional year "2014"
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