During 2021, Falwell Inc. had 640,000 shares of common stock and 64,000 shares of 9% cumulative...

 

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During 2021, Falwell Inc. had 640,000 shares of common stock and 64,000 shares of 9% cumulative preferred stock outstanding. The preferred stock has a par value of $100 per share. Falwell did not declare or pay any dividends during 2021. Falwell's net income for the year ended December 31, 2021, was $3.9 million. The income tax rate is 25%. Falwell granted 17,000 stock options to its executives on January 1 of this year. Each option gives its holder the right to buy 34 shares of common stock at an exercise price of $43 per share. The options vest after one year. The market price of the common stock averaged $44 per share during 2021. What is Falwell's basic earnings per share for 2021, rounded to the nearest cent? During 2021, Falwell Inc. had 640,000 shares of common stock and 64,000 shares of 9% cumulative preferred stock outstanding. The preferred stock has a par value of $100 per share. Falwell did not declare or pay any dividends during 2021. Falwell's net income for the year ended December 31, 2021, was $3.9 million. The income tax rate is 25%. Falwell granted 17,000 stock options to its executives on January 1 of this year. Each option gives its holder the right to buy 34 shares of common stock at an exercise price of $43 per share. The options vest after one year. The market price of the common stock averaged $44 per share during 2021. What is Falwell's basic earnings per share for 2021, rounded to the nearest cent? During 2021, Falwell Inc. had 640,000 shares of common stock and 64,000 shares of 9% cumulative preferred stock outstanding. The preferred stock has a par value of $100 per share. Falwell did not declare or pay any dividends during 2021. Falwell's net income for the year ended December 31, 2021, was $3.9 million. The income tax rate is 25%. Falwell granted 17,000 stock options to its executives on January 1 of this year. Each option gives its holder the right to buy 34 shares of common stock at an exercise price of $43 per share. The options vest after one year. The market price of the common stock averaged $44 per share during 2021. What is Falwell's basic earnings per share for 2021, rounded to the nearest cent?

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