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Question - Hutchins Company had 200,000 shares of common stock, 50,000 shares of convertible preferred stock, and$2,000,000 of 10% convertible bonds outstanding during the current year. The preferred stock was convertible into 40,000 shares of common stock. During the current year, Hutchins paid dividends of $1.00 per share on the common stock and $2.00 per share on the preferred stock. Each $1,000 bond was convertible into 50 shares of common stock. The net income for the year was $1,000,000 and the income tax rate was 30%. Calculate the basic earnings per share for the current year?
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