Earnings per share-basic and diluted
Greenwich Corporation had net income of $1,712,500 in 2009. The company had 300,000 shares of $4 par value common stock and 25,000 shares of 8%, $100 par, convertible preferred stock outstanding throughout the year. Each share of preferred stock is convertible into four shares of common stock. Compute the following for 2009:
(a) Basic earnings per share:
(b) The number of shares to be used in computing diluted earnings per share.

Question

Earnings per share-basic and diluted
Greenwich Corporation had net income of $1,712,500 in 2009. The company had 300,000 shares of $4 par value common stock and 25,000 shares of 8%, $100 par, convertible preferred stock outstanding throughout the year. Each share of preferred stock is convertible into four shares of common stock. Compute the following for 2009:
 (a) Basic earnings per share:
(b) The number of shares to be used in computing diluted earnings per share.

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The Answer of Earnings per share-basic and diluted
Greenwich Corporation had net income of $1,712,500 in 2009. The company had 300,000 shares of $4 par value common stock and 25,000 shares of 8%, $100 par, convertible preferred stock outstanding throughout the year. Each share of preferred stock is convertible into four shares of common stock. Compute the following for 2009:
 (a) Basic earnings per share:
(b) The number of shares to be used in computing diluted earnings per share.

Earnings Per Share-Basic and Diluted