Question #2 (10 marks) Part A and Part B are independent. Part A. (5 marks) [Extracted from the financials of x Corporation] The Net income for 2018 was $7,500 and Preferred dividends paid $600; Common shares outstanding, Jan 1, 2018 were 3,000. Common shares issued on April 1, 2018 were 600, and Common shares repurchased on Nov 1, 2018 were 300 so that Common shares outstanding, Dec 31, 2018 were 3,300.

Required: Compute basic eps = NUM/DEN. Show calculations

Part B. [Extracted from the financials of Lim Corporation] (5 marks) The Net income for a period was $5,250. Common shares outstanding were 1,500 and convertible preferred shares outstanding were 60. Each share of preferred pays a dividend of $15 per share, and each is convertible into three common shares.

Required: Compute diluted eps = NUM/DEN = Show calculations