Cumulative convertible preferred stock sold in 20x0 at par


Assume that the following data relative to Metro Co. for 20x1 is available:

Net Income (30% tax rate): $3,200,000

Transactions in common shares

1/1 beginning number 1,000,000 shares

3/1 Purchase of treasury shares (60,000)

6/1 Stock split, 2 for 1

11/1 Issuance of shares 120,000

9% cumulative convertible preferred stock Sold (in 20x0) at par, convertible into 200,000 shares of common $1,000,000 Stock options Exercisable at the option price of $25 per share Average market price in 20x1 is $30. 60,000 shares Compute the basic and diluted EPS for 20x1.

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Finance Basics: Cumulative convertible preferred stock sold in 20x0 at par
Reference No:- TGS01496013

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