What is basic and diluted EPS

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Question - Alter Co. has 200,000 common shares, 50,000 common stock options, and 20,000 shares of $100, 5% cumulative preferred stock, all of which were outstanding during 2019. The stock options exercise price is $20 and the average market price is $50 during 2019. Alter has net income of $500,000 but declared no dividends in 2019. What is basic and diluted EPS?

A) basic EPS $2.00; diluted EPS $1.60

B) basic EPS $2.00; diluted EPS $1.74

C) basic EPS $2.50; diluted EPS $1.74

D) basic EPS $2.50; diluted EPS $1.60

Reference no: EM132554187

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