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Hanson Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock,and $1,000,000 of 10% convertible bonds outstanding...

Hanson Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock,and $1,000,000 of 10% convertible bonds outstanding during 2011. The preferred stock isconvertible into 40,000 shares of common stock. During 2011, Hanson paid dividends of $1.20per share on the common stock and $4 per share on the preferred stock. Each $1,000 bond isconvertible into 45 shares of common stock. The net income for 2011 was $800,000 and theincome tax rate was 30%.

13. Basic earnings per share for 2011 is (rounded to the nearest penny)
A) $2.94.
B) $3.22.
C) $3.35.
D) $3.60.
14. Diluted earnings per share for 2011 is (rounded to the nearest penny)
A) $2.77.
B) $2.81.
C) $3.05.
D) $3.33.

This question was asked on Jan 27, 2013.

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