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Q. Basic and diluted earnings per share Assume that the following data relate to rosen, Inc. for the year 2011: Net income (30% tax rate)$3000000 Average common shares outstanding 2011 1000000 shares 10% cumulative convertible preferred stock: convertible into 80000 shares of common 8% convertible bonds: convertible into 75000 shares of common $2500000 Stock options: Exercisable at the option price of $25 per share: average market price in 2011, $30 84000 shares instructions compute (a) basic earnings per share, nd (b) diluted earnings per share.
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