Question 1 Golden Corp. has been operating successfully for the past fifteen years. However, during recent years, its common shares outstanding changed as shown below. The corporation uses the calendar year as its fiscal year. 2019 300,000 2018 240,000 2017 200,000 40,000 60,000 Shares outstanding, Jan 1 Shares sold, Apr 2017 25% stock dividend, Jul 1, 2018 2-for-1 stock split, Jul 1, 2019 Shares sold, Oct 1, 2019 Shares outstanding, Dec 31 Net Income 300,000 100,000 700,000 $ 750,000 300,000 660,000 240,000 598,000 Required: 1. Calculate the weighted average number of shares outstanding for each year. 2. Assuming there were no preferred shares outstanding, calculate EPS for each year Question 2 $4,500,000 The following data are presented by Waxman Ltd. for calendar 2019: Net income Common shares outstanding, 1,000,000 shares 10%, cumulative preferred shares, convertible into 120,000 common shares 8% convertible bonds; convertible into 105,000 common shares 360,000 call options exercisable at $25 per share $1,600,000 $7,500,000 Additional information: 1. The common and preferred shares and the convertible bonds were outstanding from the beginning of the year. 2. No dividends were declared or distributed in 2018 or 2019. 3. The average market price of the common shares in 2019 was $30. The stock price was $27 on January 1, 2019, and $35 on December 31, 2019. 4. The convertible bonds were sold at par. 5. The income tax rate for 2019 is 30%. a. Required: Calculate basic EPS. b. Calculate diluted EPS. c. Briefly discuss the usefulness of the EPS measure in general. What is the additional importance of reporting diluted EPS