Bloodhound Corp. provides the following data for calendar 2020

Net Income............................................................................    $ 2,400,000

Transactions in Common Shares                                    Change                Cumulative

Jan 1     beginning                                                                                                            1,000,000

Mar 1     purchase of treasury shares                            (60,000)                         940,000

Jun 1     shares split 2 for 1                                                   940,000                     1,880,000

Nov 1     issuance of new shares                                        120,000                     2,000,000

8% Cumulative Convertible Preferred Shares (no par)

Convertible into 200,000 common shares

           adjusted for split on June 1..............................................    $ 1,000,000

Stock Options

Exercisable at the option price of $ 25 per share.

Average market price in 2020 was $ 30 (market price

and option price adjusted for split)....................................... 60,000 shares

Instructions

a)      Calculate basic earnings per share for 2020.

b)      Calculate diluted earnings per share for 2020.

Answer rating: 100% (QA)

Solution Calculation of weighted average shahes outstanding durlng t... View the full answer