Careful Carol's Creamy Crumpets had 200,000 shares of common stock outstanding at 12/21/2020. On April 1, 2020, the company issued an additional 50,000 shares. On July 31, 2020, the company repurchased 10,000 shares as treasury stock. On November 30, 2020, the company declared 5% stock dividend. The company reported net income for 2020 of $257,000. a. Compute basic earnings per share (EPS) The following additional information is available: Stock Options: The company had 30,000 stock options outstanding that were exercised throughout the period at a strike/exercise price of $13 per share. The average market price of the company's stock during 2020 was $10 per share. Convertible bonds: The company has $350,000 of 6% convertible bonds outstanding which was outstanding throughout the year. The bonds are convertible into 20,000 shares of the company's stock. The company's tax rate is 25%. b. Compute diluted earnings per share Show all work fully lablel
Careful Carol's Creamy Crumpets had 200,000 shares of common stock outstanding at 12/21/2020. On April 1, 2020, the company issued an additional 50,000 shares. On July 31, 2020, the company repurchased 10,000 shares as
a. Compute basic earnings per share (EPS)
The following additional information is available:
Stock Options: The company had 30,000 stock options outstanding that were exercised throughout the period at a strike/exercise price of $13 per share. The average market price of the company's stock during 2020 was $10 per share.
Convertible bonds: The company has $350,000 of 6% convertible bonds outstanding which was outstanding throughout the year. The bonds are convertible into 20,000 shares of the company's stock. The company's tax rate is 25%.
b. Compute diluted earnings per share
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