Reference no: EM133091873

Question - At December 31, 2010, Bradie Company had 1,000,000 shares of common stock outstanding. On April 1, 2011, an additional 200,000 shares of common stock were issued, on July 1 2011 Bradie purchased 150,000 shares on the open market (stock price was $17 per share), on November 1, 2011 Bradie announced and issued a 3 for 1 stock split, and on December 1, 2011 the company purchased 1,800,000 shares on the open market (stock price was $15 per share). In addition, Bradie had $9,000,000 of 5% convertible bonds outstanding at December 31, 2010, which are convertible into 500,000 shares of common stock. The conversion ratio for the bonds is automatically adjusted for stock splits and dividends. No bonds were converted into common stock in 2011. The net income for the year ended December 31, 2011, was $4,500,000 and the income tax rate was 30%. 9.

What should be the basic earnings per share for the year ended December 31, 2011, rounded to the nearest penny?

What should be the diluted earnings per share for the year ended December 31, 2011, rounded to the nearest penny? Hint: Make sure you adjust the converted shares for the stock split.