Wilson Corp. provides the following data for 20x1. Transactions in common stock: 1/1, beginning 4/1, issuance...

 

Transcribed Image Text:

Wilson Corp. provides the following data for 20x1. Transactions in common stock: 1/1, beginning 4/1, issuance 6% $100 par convertible cumulative preferred stock Issued at $210,000, convertible into 20,000 shares Stock options 300,000 shares 100,000 shares Option price Average market price Year-end market price $200,000 60,000 shares $25 $35 $40 The net income for 20x1 is $2,300,000. The company's tax rate is 30 percent. No conversion or options were exercised during 20x1. 1) Compute basic earnings per share (rounded to 2 decimal places) for 20x1. Show your computations. 2) Compute diluted earnings per share (rounded to 2 decimal places) for 20x1. Show your computations Wilson Corp. provides the following data for 20x1. Transactions in common stock: 1/1, beginning 4/1, issuance 6% $100 par convertible cumulative preferred stock Issued at $210,000, convertible into 20,000 shares Stock options 300,000 shares 100,000 shares Option price Average market price Year-end market price $200,000 60,000 shares $25 $35 $40 The net income for 20x1 is $2,300,000. The company's tax rate is 30 percent. No conversion or options were exercised during 20x1. 1) Compute basic earnings per share (rounded to 2 decimal places) for 20x1. Show your computations. 2) Compute diluted earnings per share (rounded to 2 decimal places) for 20x1. Show your computations