The following data relate to Schroeder Ltd. for the calendar year 2020: Net income...
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Accounting
The following data relate to Schroeder Ltd. for the calendar year 2020:
Net income (30% tax rate) ...................................$3,250,000
Average number of common shares outstanding during 2020..................................1,200,000shares
8%, cumulative convertible preferred shares: convertible into 90,000 common shares ............$1,800,000
6% convertible bonds; convertible into 60,000 common shares ..............................................$2,000,000
Stock options, exercisable at $30 per share ............ 105,000 shares
All the convertible securities and stock options were outstanding all year. The average market price of the common shares in 2020 was $35.
Instructions Calculate:
a. basic earnings per share
b. diluted earnings per share.
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