On December 31, 2021, Ambient Corporation had 200,000 shares of common stock outstanding. On July 1, 2022, Ambient issued an additional 54,000 shares for cash. On January 1, 2022, Ambient issued 24,000 shares of convertible preferred stock. The preferred stock had a par value of $100 per share and paid a 6% dividend. Each share of preferred stock is convertible into 8 shares of common. During 2022, Ambient paid the regular annual dividend on the preferred and common stock. Net income for the year was $340,000. Required: Calculate Ambient's basic and diluted earnings per share for 2022. (Hint: you may assume that the amount of dividends paid in 2022 was sufficient to satisfy any commitment to preferred stockholders)
On December 31, 2021, Ambient Corporation had 200,000 shares of common stock outstanding. On July 1, 2022, Ambient issued an additional 54,000 shares for cash. On January 1, 2022, Ambient issued 24,000 shares of convertible
Required:
Calculate Ambient's basic and diluted earnings per share for 2022. (Hint: you may assume that the amount of dividends paid in 2022 was sufficient to satisfy any commitment to preferred stockholders)
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