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show all work label answers December 31, 2022 1. Options were granted in July 2020 to purchase 50,000 shares of common stock at $20 per
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December 31, 2022 1. Options were granted in July 2020 to purchase 50,000 shares of common stock at $20 per share. The average market price of Webster's common stock during 2022 was $30 per share. All options are still outstanding at the end of 2022. 2. Both the 8% and the 10% convertible bonds were issued in 2018 at face value. Each convertible bond is convertible into 40 shares, of common stock. (Each bond has a face value of $1,000.) 3. The 10% cumulative, convertible preferred stock was issued at the beginning of 2022 at par. Each share of preferred is convertible into four shares of common stock. 4. The average income tax rate is 40%. 5. The 500,000 shares of common stock were outstanding during the entire year. 6. Preferred dividends were not declared in 2022. 7. Net income was $1,750,000 in 2022 . 8. No bonds or preferred stock were converted during 2022 Step by Step Solution
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