Reference no: EM132767593
Question - Stan Corp. provides the following data for 20x1
Transactions in common stock:
1/1, beginning 300,000 shares
4/1, issuance 100,000 shares
8% $100 par nonconvertible cumulative preferred stock $100,000
Issued at par
6% $100 par convertible cumulative preferred stock $200,000
Issued at $105
Convertible into 20,000 shares
Stock options 60,000 shares
Option price $25
Average market price $35
Year-end market price $40
The net income for 20x1 is $2,300,000. The company's tax rate is 30 percent. No conversion or options were exercised during 20x1.
Required - Compute basic and diluted earnings per share.