On January 1, 2017, Wilcorp, Inc. (WINK), had:
200,000 common shares outstanding
10,000 8% preferred shares outstanding with a $100 par amount
On March 1, 2017 WINK issued another 25,000 common shares. Also assume that WINK had issued options in 2017 to buy 25,000 shares of common stock at $45 per share and that the market price is $50 per share. Net income for WINK was $600,000 in 2017.
Calculate Basic EPS. To receive full credit, you must show all of your work in the space provided below.
Calculate Diluted EPS. To receive full credit, you must show all of your work in the space provided below.