Earnings per share-basic and diluted
Stainless Corporation had net income of $7,800,000 in 2010. The company had 500,000 shares of $4 par value common stock and 70,000 shares of 8%, $100 par, convertible preferred stock outstanding throughout the year. Each share of preferred stock is convertible into two shares of common stock. Compute the following for 2010:
(a) The number of shares to be used in computing basic earnings per share.
(b) The number of shares to be used in computing diluted EPS.
(c) Basic earnings per share.

Question

Earnings per share-basic and diluted
Stainless Corporation had net income of $7,800,000 in 2010. The company had 500,000 shares of $4 par value common stock and 70,000 shares of 8%, $100 par, convertible preferred stock outstanding throughout the year. Each share of preferred stock is convertible into two shares of common stock. Compute the following for 2010:
 (a) The number of shares to be used in computing basic earnings per share.
(b) The number of shares to be used in computing diluted EPS.
(c) Basic earnings per share.

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The Answer of Earnings per share-basic and diluted
Stainless Corporation had net income of $7,800,000 in 2010. The company had 500,000 shares of $4 par value common stock and 70,000 shares of 8%, $100 par, convertible preferred stock outstanding throughout the year. Each share of preferred stock is convertible into two shares of common stock. Compute the following for 2010:
 (a) The number of shares to be used in computing basic earnings per share.
(b) The number of shares to be used in computing diluted EPS.
(c) Basic earnings per share.

Earnings Per Share-Basic and Diluted