3. Aero Corp. provides the following data for20x1.Transactions in common stock:1/1, beginning4/1, issuance6% $100 par convertible cumulative preferredstock$200,000Issued at $210,000, convertible into 20,000sharesStockoptionsOptionprice$2560,000 sharesAverage marketpriceYear-end marketprice$40300,000 shares100,000 shares$35The net income for 20x1 is $2,300,000. Thecompany's tax rate is 30 percent. No conversionor options were exercised during 20x1.1) Compute basic earnings per share (rounded to2 decimal places) for 20x1. Show yourcomputations.2) Compute diluted earnings per share (roundedto 2 decimal places) for 20x1. Show yourcomputations

Earnings per share (EPS) is one of many ways investors can measure the financial performance of a…

Answered: 3. Aero Corp. provides the following…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 5MCQ

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