The following transactions have also occurred at Fitzgerald: Options were granted on July 1, 2013, to purchase 200,000 shares at $15 per share. Although no options were exercised during fiscal year 2014, the average market price of the common stock per common share was $20. Each bond was issued at face value. The 8% convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal 2013. The preferred stock was issued in 2013. There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2014. The 1,000,000 shares of common stock were outstanding during the entire 2014 fiscal year. Net income for fiscal year 2014 was $1, 500,000, and the average income tax rate is 40%