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Please show work I want to know how to do myself Lerner Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock,
Please show work I want to know how to do myself
Lerner Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $600,000 of 10% convertible bonds outstanding during 2019. The preferred stock is convertible into 40,000 shares of common stock. During 2019, Lerner paid dividends of S.55 per share on the common stock and $1.80 per share on the preferred stock. Each $1,000 bond is convertible into 45 shares of common stock. The net income for 2019 was S360,000 and the income tax rate was 30%. 11. Basic earnings per share for 2019 is (rounded to the nearest penny) a $1.25. b. $145. c. $1.50 d. $1.62. 360,000 - (20,000 x 1.80)/200,000 = 1.62 12. Diluted earnings per share for 2019 is (rounded to the nearest penny) a $1.35. b. $1.39. c. $1.51. d. $1.57Step by Step Solution
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