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Diluted EPS (with convertible preferred shares and options question)
During 2009, a company had outstanding 20,000 shares of common stock and 50,000 shares of preferred stock convertible into 150,000 shares of common stock. It also had 100,000 stock options outstanding, each of which allows the holder to acquire one share of common stock for $10. During 2009 there were dividends paid of $0.50 per share on common stock and $3.50 per share of preferred stock. The net income for 2009 was $450,000 and the income tax rate was 35%. Avg market price for the common stock for the year was $25.
I can't seem to get this question right... please calculate: basic and diluted EPS for this and state whether the conv. pref shares or the options are dilutive/anti-dilutive.
Thank you so much for your help!!! |
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