Reference no: EM132032509
Net income $500 million,
common stock $1 par.
1/1 shares outstanding 150 million shares,
2/1 retire for cash 24 million shares,
7/23 2-for-1 split. 9/1 sold for cash 18million shares
Preferred stock, 10% $60 par, cumulative, non-convertible $70 million.
Preferred stock, 8% $50 par, cumulative, convertible into 4 million shares common stock $100 million.
Incentive stock option outstanding, fully vested for 4 million shares of common stock, exercisable at $15 per share.
Bond payable, 12.5% convertible into 20 million shares of common stock $200 million.
The average market price of common stock was $20
The convertible preferred stock and the bonds payable had been issued at par in 2012
The tax rate was 40%
Require: calculate basic and diluted earnings per share for the year ended December 31, 2014.
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