ABC Limited had a net income for the fiscal year ending December 31, 2020, of $16.4 million. There was 2 million entire fiscal year was $75. ABC tax rate was 27% for 2020. ABC had the following potential common shares outstanding during 2020: Options to buy 100,000 common shares at $60 per share • 800,000 convertible preferred shares entitled to a cumulative dividend of $8 per share. Each preferred sh • 5% convertible debentures with a principal amount of $100 million, issued at par. Each $1,000 debenture. 

1. Calculate the basic earnings per share.

2. Calculate the Diluted earnings per share.

Answer rating: 100% (QA)

Net income after tax 16400000 Less dividend to preferred stock 8000009 7200000 Net income available for common stock holders 9200000 Net income availa... View the full answer