The information below pertains to Bullfinch Co. for 2013. There were no changes during 2013 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no Treasury Stock. The company also has stock at $20 pe4r share.
(a) compute and show calulations for basic earnings per share for 2013
(b) compute and show calculations for diluted earnings per share for 2013
Net Income for the year $1,200,000
8% convertible bonds issued at par ($1000 per bond)
Each bond is convertible into 30 shares of common stock $2,000,000
6% convertible, preferred stock, $100 par value
Each share is convertible into 3 shares of common stock $4,000,000
Common Stock, $10 par value $6,000,000
Income Tax Rate 40%
Average market price of common stock $25 per share