Your employer just named you hot shot accountant of the year and assigned you the task of calculating their earnings per share for the year ended 12/31/18. On 1/1/18 400,000 shares of common stock were outstanding. Net income for 2018 was $1,500,000 and their tax rate was 40%. The average market value for each share was $25. On April 1 they issued 97,000 shares of common. On June 1 they acquired 37,500 share from the open market to use as treasury stock. On November 1 they sold 32,000 share of their treasury stock below their original cost.

Your company has 2 sets of options outstanding. Both sets were outstanding for the full year. The first set includes 2,000 options and each option can be exchanged for one share of common stock at an exercise price of 20$. The second set of options includes 1000 options and each option can be exchanged for one share of common stock at an exercise price 28$

On June 20, 2018 bonds were issued at par with face value of $2,000,000 and a 7% stated rate. Each bond has a $1,000 face value and is convertible into 30 share of common stock.

Your company also has 40,000 shares of 6% convertible, cumulative preferred stock ($100 par value per share) which was outstanding for the full year. Each Preferred share can be converted into 2 shares of common stock. No preferred dividends have been declared for the current year or the preceding 2 years.