(TCO 4) Davis company has outstanding 120,000 shares of common stock and 5,000 shares of preferred...

(TCO 4) Davis company has outstanding 120,000 shares of common stock and 5,000 shares of preferred stock as of January 1, 2015. The preferred stock is convertible, and can be converted into 4 shares of common stock for each share of preferred.

During the year, the following common stock transactions took place:

Issued common stock on March 1, in the amount of 4,000 shares

Issued a stock dividend (small) on all stock outstanding at April 1. The % of the small stock dividend was 15%.

On December 31, we repurchased 2,000 shares of common stock.

As of December 31, prepare the following:

1. Basic EPS

2. Diluted EPS

Expert Solution

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ekkarill92 answered 2 years ago

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(TCO 4) Davis company has outstanding 120,000 shares of common stock and 5,000 shares of preferred...

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