The following data for Hello Company for 2020 is available:

Transactions in Common Shares

Jan. 1, 2020, Beginning number 550,000

Apr. 1, 2020, Purchase of treasury shares (50,000)

July 1, 2020, Stock dividend of 50%

Nov. 1, 2020, Issuance of new shares 250,000

4% Cumulative Convertible Preferred Stock

10,000 shares, par value is $100, convertible into 150,000 shares of

common stock (already adjusted for the stock dividend). $1,000,000

Stock Options

50,000 exercisable at the option price of $10 per share.

Average market price in 2020 was $25.

(market price and option price already adjusted for the stock dividend).

Net Income $2,000,000

Instructions

1. Calculate the preferred stock dividend.
2. Calculate the weighted average shares outstanding during the year.
3. Compute basic earnings per share. (Round to the nearest penny)
4. Compute diluted earnings per share. (Round to the nearest penny)