What are the basic earnings per share reported

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Reference no: EM13951442

During 2014, Gutter Company. Had 500,000 shares of common stock and 50,000 shares of 6% cumulative preferred stock outstanding. The non-convertible preferred stock has a par value of $100 per share. Gutter did not declare or pay any dividends during 2014. Gutter's net income for the year ended December 31, 2014, was $2.5 million. The income tax rate is 40%. Gutter granted 10,000 stock options to its executives on January 1 of this year. Each option gives its holder the right to buy 20 shares of common stock at an exercise price of $29 per share. The market price of the common stock averaged $30 per share during 2014, and the stock price on December 31, 2014 was $32 per share.

A) What are the basic earnings per share reported by Gutter Company. for 2014?

B) What are the diluted earnings per share reported by Gutter Company for 2014?

Reference no: EM13951442

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