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Please show how you got the answwers EARNINGS PER SHARE On January 1, 2015, Warren Corp had 100,000 shares of common stock outstanding. On April
Please show how you got the answwers
EARNINGS PER SHARE | |||||||
On January 1, 2015, Warren Corp had 100,000 shares of common stock outstanding. On April 1, | |||||||
the corporation issued 10,000 new shares. On July 1, the corporation issued a 2-for-1 stock split. | |||||||
On Sept 1, the corporation purchased 30,000 of it stock for treasury. | |||||||
There were 40,000 shares of non-cumulative, convertible preferred stock outstanding. The | |||||||
company paid $140,000 in dividends to the preferred. Each share of preferred is | |||||||
convertible into 3 shares of common stock | |||||||
There were $2,000,000 of 8% convertible bonds that were issued at face value. Each | |||||||
$1,000 bond is convertible into 30 shares of common stock. | |||||||
The company's income for the year was $700,000 and its tax rate was 40%. | |||||||
Required: Compute basic and diluted EPS. |
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