Assume that the following data relative to Kane Company for 2015is available:
Net Income
$2,800,000
Transactions in Common Shares
Change
Cumulative
Jan. 1, 2015, Beginning number
720,000
Mar. 1, 2015, Purchase of treasury shares
(53,400
)
666,600
June 1, 2015, Stock split 2-1
666,600
1,333,200
Nov. 1, 2015, Issuance of shares
228,000
1,561,200
8% Cumulative Convertible Preferred Stock
Sold at par, convertible into 180,000 shares of common (adjustedfor split).
$900,000
Stock Options
Exercisable at the option price of $25 per share. Average marketprice in 2015, $30 (market price and option price adjusted forsplit).
93,000
shares
a.Compute weighted-average shares outstanding for 2015.
b.Compute the basic earnings per share for 2015.(Round answer to 2 decimal places, e.g.52.75.)
c.Compute the diluted earnings per share for 2015.(Round answer to 2 decimal places, e.g.52.75.)
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