Earnings per share Calculation

1.600,000 Shares of common stock outstanding at 1-1-17 2.Average market price of each share for all of 2017 is $50 3.Net income for 2017: 1,500,000 4.Tax rate : 40% 5. Activity in common shares outstanding during 2017: April 1, issued 80,000 shares Junel acquired 40,000 shares from the market to use as treasury stock November 1 sold 30,000 shares of the treasury stock 6. The company has 50,000 shares of 7% convertible, cumulative, fully participating preferred stock, $100 par value which was outstanding for the full year. 7. Each preferred share is convertible into 3 shares of common stock. 8. Preferred stock dividends have not been declared for the current or past 2 years. 9. $2,500,000(face value) of bonds were issued at par on 6-30-17 , each 1000 bond can be converted into 25 shares of common stock. The stated interest rate is 6%. 10. 3000 stock options were outstanding for the whole year. Each option can be exercised for one common share. The exercise price is $25. Calculate the basic and diluted earning per share based upon the above facts.      

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