Question 6 (11 marks) On 1 January 2020, Salt Limited had 1,200,000 ordinary shares outstanding. It also had 100,000 shares of 9%, $10 par, non-cumulative preference shares outstanding for the whole year of 2020. Salt Limited declared and paid preference share dividend in 2020. During 2020, the company had the following transactions: 1. On 1 February 2020 the company issued 150,000 new shares for cash. 2. On 1 October 2020 the company purchased 600,000 of its own outstanding shares. Net income for 2020 was $340,000. Required: a. Calculate the weighted-average number of ordinary shares outstanding in 2020. (4 marks) b. Calculate the basic earnings per share for 2020 (rounded to two decimals). (3 marks) c. As at 31 December 2020, Salt Limited has 1,000,000 share options outstanding. Each option can be exercised for one ordinary share at an exercise price of $15. The average market price for Salt Limited ordinary shares in 2020 is $50 per share. Calculate the diluted earnings per share for 2020 (rounded to two decimals). (4 marks)