The information below pertains to Baker Co. for 2017. Net...
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Accounting
The information below pertains to Baker Co. for 2017.
| Net income 2017 | $1,200,000 |
| 8% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock | $2,000,000 |
| 6% convertible, non-cumulative, preferred stock, $100 par value, each share is convertible into 3 shares of common stock | $4,000,000 |
| Common stock, $10 par value | $6,000,000 |
| Tax rate for 2017 | 40% |
| Average market share price of common stock for 2017 | $25 per share |
The company did have common stock options (granted last year) to purchase 75,000 shares of common stock at a price of $20 per share.
During the year, the following transactions took place related to equity:
May 1 - Issued 50,000 shares of common stock for $28 per share
June 1 Declared a 4% stock dividend effective on July1.
Compute basic EPS for 2017
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