shares of common stock outstanding and preferred stocks On January 1, 2012, Raiders Company had 100,000 20,000 shares of 8%, $100 par, cumulative preferred stock outstanding. The are convertible to 100,000 shares of common stocks. Raiders reported net income of s The income tax rate is 40%. Also outstanding at January 1, 2012 were fully vested stock options giving key employees the option to buy 40,000 common shares at S25. tthe market price of the common shares averaged $40 during 2012, Raiders also had 400. 7% convertible bonds outstanding throughout 2012. Each $1,000 bond is convertible into 100 500,000 incentive shares of common stock. None of the bonds had been converted by December 31, 2012 and no stock options were exercised during the year. Required: Compute basic and diluted earnings per share for Raiders Company for 2012