The information below pertains to Hood Company for $2026.$

Net income for the year

$$9,500,000$

$6\%$ convertible bonds issued at par $($ $$1,000$ per bond$)$; each bond is convertible into $60$ shares of common stock

$$4,930,000$

$5\%$ convertible, cumulative preferred stock, $$100$ par value; each share is convertible into $4$ shares of common stock

Shares of common stock outstanding, $$1$ par value

$$2,450,000$

Tax rate for $2026$

Average market price of common stock, per share

There were no changes during the year in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock.

The company also has common stock options $($granted in a prior year$)$ to purchase the following shares of common stock:

# shares available for purchase via stock options

$120,000$

price of common stock $($per share$)$

$$12$

Formulas and Methodologies:

Basic Earnings Per Share Net income $-$ Preferred Dividends Paid