QUESTION $3$

On $1/1/19$ Karitas 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:

$\frac{3}{1}\frac{?}{2019}$ issues $121,875$ common shares

$5/1/2019$ Distributes a $10\mathrm{.}00\%$ stock dividend.

$8/1/2019$ Purchases $60,000$ 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 $12\mathrm{.}00\%$ dividend and is convertible into $3$ shares of common stock.

Convertible bonds with an aggregate par value of $$5,500,000.$ The bonds are sold in increments of $$1,000$; pay a $5\mathrm{.}50\%$ coupon and are convertible into $100$ shares of common stock.

$125$ call option contracts with a strike price of $$11\mathrm{.}00$ per share. Each option contract is exercisable into $110\mathrm{.}00$ shares of common stock. The average stock price over the fiscal year is $$20\mathrm{.}00$ per share

The firm has net income of $$5,050,000$ and the corporate tax rate is $21\mathrm{.}00\%.$

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