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On December 31, 2020, the weighted average common shares outstanding during the year for Jaguars Corp. was 205,000. The market price of the common shares

On December 31, 2020, the weighted average common shares outstanding during the year for Jaguars Corp. was 205,000. The market price of the common shares averaged $ 50 in 2020. The corporation’s income tax rate is 40%.

During 2020, there were 30,000 call options to buy common shares at $ 40 a share outstanding; and there were 20,000, $ 7, no par value, cumulative, and convertible preferred shares outstanding. Each preferred share is convertible into three common shares.

In 2019, the corporation issued $ 2,000,000 of 8% convertible bonds at face value. Each $ 1,000 bond is convertible into 20 common shares.

The corporation reported a $ 750,000 net income for calendar 2020.

Instructions

Showing all details, perform the following calculations and round all EPS figures to two decimal points:

  1. The basic earnings per share (EPS) for 2020.
  2. The diluted EPS with the call options.
  3. The fully diluted EPS.

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