Information from the financial statements of ABC Corporation for year 2021 included the following: ...
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Accounting
Information from the financial statements of ABC Corporation for year 2021 included the following:
- Common stock outstanding as of January 1: 100,000 shares
- Employee stock options, exercisable during 2021 for 10,000 shares of common at strike price of $45 per share. All options were outstanding at the beginning and end of 2021.
- Convertible preferred shares, convertible into 40,000 shares of common. During 2021, the company paid dividends of $2 per share on its 84,095 shares of preferred stock.
- Net income for 2021 was $647,190
Assume a tax rate of 40%. During the year, the market price of the company's stock averaged $50 per share.
Compute basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in whole dollars.)
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