9717 shares of common stock outstanding at the beginning of the year. Net income was $384,717 ....

9717 shares of common stock outstanding at the beginning of the year. Net income was $384,717 . No dividends were paid this year nor last year. On july, the company purchased 2,000 shares of its common stock and held it in treasury. There was a 2 for 1 stock split that occurred on common stock on Dec. 1. The tax rate is 30%. A $1,500,000, 5% nonconvertible bond was issued June 30 of the current year at par value. The company has 2,000 shares outstanding of $100 par value 5% convertible Preferred stock (cumulative and non-participating). The stock was issued at $125 a share on April 1 this year and has current market price of $145 at year-end. One share of preferred stock can convert into 2 shares of common stock, none were converted.

1 Calculate Basic EPS.

2, Calculate fully diluted EPS Is Fully Dilutes EPS a required?

Expert Solution

ekkarill92 answered 7 months ago

Tabb Corp has 9,293 shares of common stock outstanding at the beginning of the year. Net...

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