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Bullwinkle Stamping began the current year with 450,000 common shares outstanding and issued an ...

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Question

Accounting

Bullwinkle Stamping began the current year with 450,000 common shares outstanding and issued an
additional 270,000 shares on September 1. The firm has $11,400,000,3.5% convertible bonds on June
30(i.e., $399,000 coupon interest annually), which are convertible into 326,000 shares of common
stock. The firm issued the bonds at par and did not convert any during the current year. It also had
$1,230,000 par value, 5% nonconvertible, noncumulative preferred stock outstanding for the full year
and declared dividends for the current year. The company is subject to a 30% tax rate and net income is
$4,000,000.
Requirement
Based on this information, compute basic and diluted earnings per share for the current year.
Calculate the basic earnings per share (EPS) for the current year. (Rounds the EPS to the nearest cent, X.XX)
Calculate the diluted EPS for the current year. (Rounds the EPS to the nearest cent, X.XX)
Please answer the two questions above.
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