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- Wilson Corp. provides the following data for 20x1.
Transactions in common stock:
1/1, beginning 300,000 shares
4/1, issuance 100,000 shares
6% $100 par convertible cumulative preferred stock $200,000
Issued at $210,000, convertible into 20,000 shares
Stock options 60,000 shares
Option price $25
Average market price $35
Year-end market price $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
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