During 20X1, Discolux Ltd. had two classes of shares outstanding: . Class A preferred shares, 3,000...

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During 20X1, Discolux Ltd. had two classes of shares outstanding: . Class A preferred shares, 3,000 shares issued and outstanding at the beginning of the year; quarterly dividend rate of $250 per share, cumulative; each share is convertible into 50 shares of Class B common. . Class B common shares, 161,000 shares issued and outstanding at the beginning of the year. Also assume the following: . Net income for the year is $3,400,000; there are no discontinued operations. . 700 shares of Class A were converted into 35,000 Class B shares on 1 April 20X1; dividends for the first quarter of the year were paid on 30 March 20X1. . Options to issue 15,000 common shares to senior executives for $5 per share were outstanding during the entire year. No options were exercised during the year. The average share price during the year was $10. Required: 1. Determine the weighted-average number of shares outstanding during 20X1. Weighted average number of shares ces 2. Determine basic EPS. (Do not round Intermediate calculations and round your answer to 2 decimal places.) Basic ESP 3. Determine diluted EPS.(Do not round intermediate calculations and round your answer to 2 decimal places.) Diluted EPS During 20X1, Discolux Ltd. had two classes of shares outstanding: . Class A preferred shares, 3,000 shares issued and outstanding at the beginning of the year; quarterly dividend rate of $250 per share, cumulative; each share is convertible into 50 shares of Class B common. . Class B common shares, 161,000 shares issued and outstanding at the beginning of the year. Also assume the following: . Net income for the year is $3,400,000; there are no discontinued operations. . 700 shares of Class A were converted into 35,000 Class B shares on 1 April 20X1; dividends for the first quarter of the year were paid on 30 March 20X1. . Options to issue 15,000 common shares to senior executives for $5 per share were outstanding during the entire year. No options were exercised during the year. The average share price during the year was $10. Required: 1. Determine the weighted-average number of shares outstanding during 20X1. Weighted average number of shares ces 2. Determine basic EPS. (Do not round Intermediate calculations and round your answer to 2 decimal places.) Basic ESP 3. Determine diluted EPS.(Do not round intermediate calculations and round your answer to 2 decimal places.) Diluted EPS

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1Calculation of WeightedAverage Number of Shares Outstanding At the beginning of the year Class A preferred shares 3000 Class B common shares 161000 O... View the full answer