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Jackie Stamping began the current year with 500,000 common shares outstanding and issued an ...

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Accounting

Jackie Stamping began the current year with 500,000 common shares outstanding and issued an
additional 120,000 shares on October 1. The firm has $11,300,000,1.5% convertible bonds outstanding
for a full year (i.e., $169,500 coupon interest per year), which are convertible into 329,000 shares of
common stock. The firm issued the bonds at par and did not convert any during the current year. It also
had $1,240,000 par value, 3% 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 $3,800,000.
Requirement
Based on this information, compute basic and diluted earnings per share for the current year.
Compute the basic earnings per share for the current year. (Rounds the EPS to the nearest cent, X.XX).
Compute the diluted earnings per share for the current year. (Rounds the EPS to the nearest cent, X.XX).
Please answer the two questions above.
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