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Question 4 (10 Marks) Vera Corporation is preparing earnings per share data for 2020 The...

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Question 4 (10 Marks) Vera Corporation is preparing earnings per share data for 2020 The net income for the year ended December 31, 2020, was $420,000 and there were 66,000 corrmon shares outstanding during the entire year Vera has the following two convertible securities outstanding 10% convertible bonds (each $1,000 bond is convertible into 25 $100,000 common shares) 5% convertible $100 par value preferred shares (each share is $50,000 convertible into two common shares) Stock options (granted in a prior year) to purchase 75,000 common a $750,000 shares at $20 per share 515 per Average market price of common shares share Both convertible securities were issued at face value in 2017. There were no conversions during 2020 and Vera's income tax rate is 25% The preferred shares are cumulative Required: a. Calculate Vera's basic earnings per share for 2020. Round to the nearest cent2 Marks) b. Calculate Vera's diluted earnings per share for 2020. (8 Marks)

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