Reference no: EM132493218
SKZ reported the following capital structure on December 31, 2019 and results of operations for calendar year 2019:
Preferred Stock, $10 par, 5% cumulative, 15,000 shares outstanding all year $150,000
Common Stock, $25 par, 10,000 shares outstanding all year $250,000
Retained Earnings at December 31, 2019 $365,000
Net Income for 2019 $ 93,300
Additional Information:
- Average market price of the common stock for 2019 was $60. The market price on December 31, 2019 was $65.
- Options to purchase 3,000 shares of common stock at $20 per share were outstanding all year.
- The preferred stock is not convertible into common stock
REQUIRED:
Question 1: Compute diluted earnings per share for 2019.