PROBLEM 6-8 Earnings per Share The fnancial data below should be used to answer the following two questions tions WRESTLING FEDERATION OF AMERICA, INC. Capital Structure and Earnings for Year 7 multiple choice 2,700,000 Number of common shares outstanding on December 31, Year 7..... . . . . . Number of common shares outstanding during Year 7 (weighted average).2,500,000 ,25 Market price per common share on December 31, Year 7 Weighted-average market price per share during Year 7 Options outstanding during Year 7 .20 Number of shares issuable on exercise of options .200,000 15 Convertible bonds outstanding (December 31, Year 3, issue date): 10,000 10 Proceeds per bond at issue (at par value) ............................1,000 Tax rate for Year 1 40.0% Shares of common issuable on conversion (per bond).... .. . Coupon rate.... . . . .sasit earnings per share for Year 7 is (choose one of the following) c. $2.60 d. $2.50 a. $2.41 .$2.57 2 Diluted earnings ol nd er or Year 7 is (chose one a. $2.43 b.$2.55 c. $2.54 d. $2.60 (CFA Adapted