Question: 6. (Compute basic & diluted EPS with cumulative preferred stock and stock options) Stellar Inc. had 10.000 shares of $50 par 10% cumulative preferred stock

6. (Compute basic & diluted EPS with cumulative preferred stock and stock options) Stellar Inc. had 10.000 shares of $50 par 10% cumulative preferred stock and 200,000 shares of common stock issued and outstanding throughout the year. Stellar also had stock options outstanding throughout the year which allow the holders to purchase 50,000 shares of common stock at $35 per share. The average market price of Stellar's common stock was $50 during 2015, Stellar's net income was $250,000. Compute basic and diluted earnings per share

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