get right I have to find the earnings per Sharon on exercise 16 18. Net income I understand, but the weighted-average number per outstanding shares I cannot understand.
Pina Inc. presented the following data.
Net income $2,740,000
Preferred stock: 45,000 shares outstanding, $100 par, 8%
cumulative, not convertible 4,500,000
Common stock: Shares outstanding 1/1 714,000
Issued for cash, 5/1 291,600
Acquired treasury stock for cash, 8/1 135,600
2-for-1 stock split, 10/1
Compute earnings per share. (Round answer to 2 decimal places, e.g. $2.55.)
Earnings per share$
Can someone help me with the formulas?
The Sweet Corporation issued 10-year, $4,790,000 par, 7% callable convertible subordinated debentures on January 2, 2017. The bonds have a par value of $1,000, with interest payable annually. The current conversion ratio is 14:1, and in 2 years it will increase to 20:1. At the date of issue, the bonds were sold at 97. Bond discount is amortized on a straight-line basis. Sweet's effective tax was 40%. Net income in 2017 was $8,000,000, and the company had 2,015,000 shares outstanding during the entire year.
(a) Compute both basic and diluted earnings per share. (Round answers to 2 decimal places, e.g. $2.55.)
Basic earnings per share$
Diluted earnings per share$
Thank you so much, I really need the help in figuring this out. I am confused by "Issued for cash 5/1" treasury
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