On 1/1/19 Chong Inc., a calendar-year company, has 975,000 common shares outstanding. Over the course of the fiscal year, the company experiences the Following events:

Common stock related events:
3/1/2019	issues 146,250 common shares
5/1/2019	Distributes a 10.00% stock dividend.
8/1/2019	Purchases 70,000 shares of treasury stock.
10/1/2019	issues a 2 for 1 stock split
The firm also has the following securities outstanding for the entire year (all conversion rates already reflect the effect of the stock dividend and stock split):
50,000 shares of convertible preferred stock. The convertible preferred stock has a par value of $10 per share, pays a 16.00% dividend and is convertible into 3 shares of common stock.
Convertible bonds with an aggregate par value of $7,500,000. The bonds are sold in increments of $1,000; pay a 7.50% coupon and are convertible into 100 shares of common stock.
150 call option contracts with a strike price of $13.00 per share. Each option contract is exercisable into 150.00 shares of common stock. The average stock price over the fiscal year is $20.00 per share

The firm has a net income of $5,300,000 and the corporate tax rate is 21.00%.

A) Calculate the weighted average number of shares outstanding at 12/31/19

B) Calculate basic EPS

C) Calculate whether each security in the firm's capital structure is dilutive

D) Calculate fully-diluted EPS

Answer rating: 100% (QA)

A Common shares outstanding on 11 19 975000 Common shares issued on 312019 146250 Increase in weight... View the full answer