Reference no: EM132968709

For the year 20X1, Trinity Ltd., a company based in Barrie, had net income of $4,000,000 and there were no discontinued operations.

During 20X1, the company had two classes of shares outstanding:

Class A preferred shares: 1,200 shares issued and outstanding at the beginning of the year; quarterly dividend rate of $100 per share; cumulative; each share is convertible into 50 shares of Class B common.

Class B common shares: 150,000 shares issued and outstanding at the beginning of the year.Also note the following:

1. 700 shares of Class A were converted into Class B shares on April 1 20X1; dividends for the first quarter of the year were paid on March 31 20X1.
2. Options to issue 8,000 common shares to senior management personnel for $4 per share were outstanding during the entire year. The average share price during the year was $12.Required:

Problem (a) Determine the weighted-average number of shares outstanding during 20X1.

Problem (b) Determine basic EPS.

Problem (c) Determine diluted EPS.