On January 1^st 2020 Joody corporation had 10,000 of ordinary shares (C.S) outstanding. During the year, the following transactions affected the ordinary shares:

March15:

Issued 30,000 Shares.

June1:

Issued a 20% stock dividend.

July 1:

Acquired 5,000 share of treasury stock.

September 1:

Issued a 10-for-1 stock split.

December 1:

Reissued 5,000 shares of treasury stock.

Instructions:

1-What is the weighted-average number of shares outstanding? (3.5 Points)

2-Assume the net income of the company is $50,000 and the preferred dividends $10,000. Compute EPS. (1.5 Point)

3-If the company on November 1 transferred $100,000 Bonds to 5,000 ordinary shares:

a-What would be the total shares at that date only?

b-Define this type of bond and clarify its impact on the earning per share?