Question 1-4 Assume the following data relative to ABC Corporation for 2016 is available: $1,400,000 Net Income Transactions in common shares: 500,000 Jan 1, 2016 Beginning number: 60,000 March 1, 2016 Purchased treasury shares June 1,2016 Stock split 2 for 1 Nov 1, 2016 Issuance of new shares 120,000 8% Cumulative Preferred Stock Sold at par, convertible into 200,000 shares as adjusted for stock split $1,000,000 Stock Options-60.000 options Exercisable at the option price of $25 per share. $30 average market price in 2016, S20 year end market price(market price and option price adjusted for stock split) 1 In computing Basic EPS what are the weighted shares outstanding: a. 726,667 b 1,000,000 c. 920,000 d. 760,000 2. In computing Diluted EPS what are the weighted shares outstanding: a. 930,000 b. 1,130,000 c. 1,120,000 d. 1,400,000 3. In computing Diluted EPS if preferred stock is converted into common stock what is its impact on per share basis? a. .40 b..80 c. 1.20 d..60 4. What is Diluted EPS per share? a. 1.43 b. 1.57 c. 1.17 d. 1.24