Question - Assume that the following data relate to Rosen, Inc. for the year 2013:
Net income (30%tax rate)...........................................$3,000,000.
Average common shares outstanding 2013...................$1,000,000 shares
10% cumulative convertible preferred stock: Convertible inro 80,000 shares of common ................$1,600,000.
8% convertible bonds; convertible into 75,000 share of common.................$$2,500,000
Stock Options: Excercisable at the option price of $25 per share: Average maket price in 2013, $30---------------------------------84,000 shares
Instructions: Compute (a) basic earnigs per share, and (b) diluted earning per share.