mpoirier07
Nov 30, 2010, 07:37 PM
I need help computing this problem.
Assume that the following data relative to Metro Co. for 2001 is available:
Net Incom (30% tax rate): $3,200,000
Transactions in common shares
1/1 Beginning number 1,000,000 shares
3/1 Purchase of treasury shares (60,000)
6/1 Stock split, 2 for 1
11/1 Issuance of shares 120,000
9% cumulative convertible preferred stock
Sold (in 2000) at par, convertible into 200,000 shares of common stock $1,000,000
Stock Options
Exercisable at the option price of $25 per share
Average market price in 2001 is $30 60,000 shares
Compute the basic and diluted earnings per share for 2001
Assume that the following data relative to Metro Co. for 2001 is available:
Net Incom (30% tax rate): $3,200,000
Transactions in common shares
1/1 Beginning number 1,000,000 shares
3/1 Purchase of treasury shares (60,000)
6/1 Stock split, 2 for 1
11/1 Issuance of shares 120,000
9% cumulative convertible preferred stock
Sold (in 2000) at par, convertible into 200,000 shares of common stock $1,000,000
Stock Options
Exercisable at the option price of $25 per share
Average market price in 2001 is $30 60,000 shares
Compute the basic and diluted earnings per share for 2001