Cumulative preferred stock outstanding

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Reference no: EM133638054

Question

During 2021 Farewell Inc has 501,000 shares Of common stock and 50,500 shares of 5% cumulative preferred stock outstanding. The preferred stock has par value of $100 per share. Farewell did not declare or pay any dividends in 2021. Farewells net income for the ended December 31, 2021 was 2.6 million. The income tax rate is 20%. Farewells granted 11,000 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 $30 per share. The options vest agree one year. The market price of the common stock averaged $31 per share during 2021. What is farewells basic and diluted earnings per share?

Reference no: EM133638054

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