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  3. hanson co. had 200,000 shares of common stock, 20,

Hanson Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and...

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Accounting

Hanson Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000 of 7.5% convertible bonds outstanding during 2018. The preferred stock is convertible into 40,000 shares of common stock. During 2018, Hanson paid dividends of $.90 per share on the common stock and $3 per share on the preferred stock. Each $1,000 bond is convertible into 45 shares of common stock. The net income for 2018 was $600,000 and the income tax rate was 30%. 4.Basic earnings per share for 2018 is (rounded to the nearest penny) a. $2.20. b. $2.42. c. $2.51. d. $2.70.

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