Calculate the basic and diluted eps for 2013

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On December 31, 2013 Ramon Corp has 500,000 oustanding common shares and 62,000 shares of $100 par value 6% cumulative preferred stock. They had the following tranactions occur in 2014: March 1, issued 75,000 new shares of common stock June 1, declared and distributed a 5% stock dividend Oct 1, purchased 50,000 treasury shares At the end of the year, there were fully vested executive options for the purchase of 40,000 shares with an exercise price of $28 and an average market price of $39. Also, they have $2 million in bonds paying 4% convertible into 100,000 common shares (adjusted for the stock dividend). Net Income: $1,200,000 & tax rate is 40%. Calculate the basic and diluted EPS for 2013. Are there any dilutions, if any, in this equity structure?

Reference no: EM13267462

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