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Question
Penn Company had 10,000,000 shares of common stock outstanding on January 1, 2012. Penn entered into the following stock transactions during 2012:
2,000,000 shares of common stock were issued on April 1st.
600,000 shares of common stock were purchased on May 1st and were being held as treasury stock.
500,000 shares of preferred stock were issued on July 1st.
400,000 shares of treasury stock were reissued on October 1st.
A 2-for-1 common stock split was declared on November 1st.
Bonds convertible into 1,200,000 shares of common stock were issued on December 1st; the bonds are considered to be dilutive.
Determine the number of shares to be used in the calculation of basic EPS and diluted EPS.
Answer
This answer is hidden. It contains 195 characters.
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