EPS Inc. had net income of $8,950,000 in 2xxx. The company had 2.500,000 shares of $4 par value common stock and 60,000 shares of 8%, $100 par, preferred stock outstanding throughout the year. Each share of preferred stock is both cumulative and convertible into 3 shares of common stock. Compute the following for 2xxx: (show your work) (a) The number of shares to be used in computing basic earnings per share. (b) The number of shares to be used in computing diluted EPS. (c) Basic earnings per share
EPS Inc. had net income of $8,950,000 in 2xxx. The company had 2.500,000 shares of $4 par value common stock and 60,000 shares of 8%, $100 par, preferred stock outstanding throughout the year. Each share of preferred stock is both cumulative and convertible into 3 shares of common stock. Compute the following for 2xxx: (show your work) (a) The number of shares to be used in computing basic earnings per share. (b) The number of shares to be used in computing diluted EPS. (c) Basic earnings per share
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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