1 2 3 Answer saved Finish attempt... Question 2 Answer saved Marked out of 3.00 P Flag question Basic EPS $ Diluted EPS $ Computing EPS: Convertible Preferred Stock Charter Company earned net income of $48,000 for the year. The company had 10,000 shares of common stock outstanding during the year and 1,000 shares of noncumulative preferred stock, each convertible into 5 shares of common stock with $10 par value per share. The tax rate is 25%. During the year, Charter Company declared and paid $5,000 in preferred dividends. The company had no common stock dividends. a. Compute basic earnings per share. b. Compute diluted earnings per share. Note: Enter the earnings per share amounts in dollars and cents, rounded to the nearest penny. Net Income Available to Weighted Avg. Common Common Stockholders Shares Outstanding 0 0 0 $ 0 $ eBook Videos Per Share 0 0 Print

Computing EPS: Convertible Preferred Stock Charter Company earned net income of $48,000 for the year. The company had 10,000 shares of common stock outstanding during the year and 1,000 shares of noncumulative preferred stock, each convertible into 5 shares of common stock with $10 par value per share. The tax rate is 25%. During the year, Charter Company declared and paid \$5,000 in preferred dividends. The company had no common stock dividends. a. Compute basic earnings per share. b. Compute diluted earnings per share. Note: Enter the earnings per share amounts in dollars and cents, rounded to the nearest penny