QUESTION 1 Not complete Marked out of 1.00 Flag question Computing Basic and Dil

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QUESTION 1 Not complete Marked out of 1.00 Flag question Computing Basic and Diluted Earnings per Share During 2015, Park Corporation had 50,000 shares of$10 par value common stock and 10,000 shares of 8%, $50 par value convertible preferred stock outstanding. Each share of preferred stock may be converted in three shares of common stock. Park Corparatian's 2015 net income was $220,000. a. Compute the basic earnings per share for 2015. (Round answer to two decimal places.) S 0 b. Compute the diluted earnings per share for 2015. (Round answer to two decimal places.) $ 0 Check

Explanation / Answer

a) Basic earning per share = (220000-40000)/50000 = 3.60 per share

b) Diluted earning per share = 220000/80000 = 2.75 per share

Diluted shares = 10000*3+50000 = 80000 Shares

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