Question 2 As of Jan 1, 2021, Ranko Ltd had 900,000 common shares outstanding (no preferred shares). Throughout 2021, Ranko issued 120,000 shares on May 1, purchased 72,000 treasury shares on Sep 1, and issued another 84,000 shares on Nov 1. The "weighted" average of common shares outstanding for 2021, therefore, is: 0 1,018,000 O 970,000 0 938,000 0994,000 Question 3 As of Dec 31, 2020 and 2021, Muffin Co. had 200,000 common shares and 20,000, $5, "no par value" cumulative preferred shares outstanding. Dividends were NOT declared in 2020 or 2021. In 2021, net income was $800,000. For 2021, what is Muffin Co's basic EPS? O $4.00 O $3.50 O $3.00 O $2.00 Question 4 As of Dec 31, 2021, Salt & Pepper Inc. (S&P) had 600,000 common shares outstanding (no preferred shares issued). Further, S&P had granted 180,000 stock options to some executives. These options gave the executives the right to purchase S&P's shares at the option price of $74 per share. As of today, none of these options have been exercised. The "average" market price of S&P's common shares during 2021 was $100. When calculating Diluted EPS for 2021, what number of shares should be used? 0733,200 0 600,000 O 646,800 O 663,244 Question 5 As of Dec 31, 2020, Hernandez Co. had 1,000,000 common shares outstanding (no preferred shares issued). On Oct 1, 2021, an additional 200,000 common shares were issued. Further, Hernandez Co. had $10,000,000 6% convertible bonds outstanding at Dec 31, 2020, which are convertible into 450,000 common shares. No bonds were converted during 2021. Net income for calendar 2021 was $3,000,000. With a tax rate of 30%, what would the DILUTED EPS be for 2021? O $2.28 O $2.00 0 $3.26 O $2.40