The following information pertains to Medallion Company for the year 2013
Net Income for the year $2,400,000
8% convertible bonds, issued at par ($1,000 per bond).
Each bond convertible into 30 shares of common. (Bonds are outstanding at year end) $4,000,000
6% cumulative preferred stock, $100 par value, (None converted during the year) $6,000,000
Common Stock Issued and Outstanding, $10 Par Value $12,000,000
Additional Information:
Average Market price of common stock (per share) $25
Option Price (to purchase shares) $20
Number of share to purchase (under options) 150,000
Income Tax Rate 32%
Note: There were no changes during the year on the number of common shares, preferred shares or convertible bonds outstanding. There is no treasury stock. As noted above, the company has common stock options outstanding (granted in a previous year) to purchase 150,000 shares of common stock at $20 per share
Note the requirements below - Round your answer to two decimal places.
Required:
A] Calculate the Basic (Simple) Earnings per Share