70.2K

Verified Solution

Link Copied!

please help figure out this earnings per share:

During 20X1, Discolux Ltd, had two classes of shares outstanding: - Class A preferred shares, 1,800 shares issued and outstanding at the beginning of the year; quarterly dividend rate of $200 per share, cumulative; each share is convertible into 40 shares of Class B common. - Class B common shares, 145,000 shares issued and outstanding at the beginning of the year. Also assume the following: - Net income for the year is $3,080,000; there are no discontinued operations. - 500 shares of Class A were converted into 20,000 Class B shares on 1 April 20X; dividends for the first quarter of the year were paid on 30 March 201. - Options to issue 12,000 common shares to senior executives for $3 per share were outstanding during the entire year, No options were exercised during the year. The average share price during the year was $10. Required: 1. Determine the welghted average number of shares outstanding during 201. 2. Determine basic EPS. (Do not round intermediate calculations and round your answer to 2 decimal places.) 1. Determine the weighted average number of shares outstanding during 20X1. Answer is complete and correct. 2. Determine basic EPS. (Do not round intermediate calculations and round your answer to 2 decimal places.) 3. Determine diluted EPS. (Do not round intermediate calculations and round your answer to 2 decimal places.)

Answer & Explanation Solved by verified expert

See Answer