Shares of convertible preferred stock

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Reference no: EM13825765

Hanson Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000 of 5% convertible bonds outstanding during 2015. The preferred stock is convertible into 40,000 shares of common stock. During 2015, Hanson paid dividends of $.60 per share on the common stock and $2 per share on the preferred stock. Each $1,000 bond is convertible into 45 shares of common stock. The net income for 2015 was $400,000 and the income tax rate was 30%

Basic earnings per share for 2015 is (rounded to the nearest penny)

a. $1.47.

b. $1.61.

c. $1.67.

d. $1.80.

Reference no: EM13825765

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