"Intermediate corporation asked for your assistance with their earnings per share calculation for the year ended 12/31/2012. They provide you with...

"Intermediate corporation asked for your assistance with their earnings per share calculation for the year ended 12/31/2012. They provide you with the following information. they had 500,000 shares of stock outstanding on 1/1/2012. the average market value of each share is $25 for 2012. Their net income for 2012 was $1,200,000 and their tax rate is 40%. On April 1 they issued 75,000 shares. On June 1 they acquired 37,500 shares from the open market to use as treasury stock. Intermediate has 2000 stock options outstanding for the entire year. each option can be exchanged for one share of common stock at an exercise price of $20. In addition, Intermediate has outstanding for the entire year, a bond which was issued at par with face value of $2,000,000 and a 5% interest rate. Each $1000 bond is convertible into 20 shares of Intermediate common stock.Intermediate also has 40,000 shares of %6 convertible, cumulative preferred stock ($100 par value) which was outstanding for the full year. Each preferred share can be converted into 3 shares of common stock, No preferred dividends have been declared for the current year or the preceding 2 years.Provide basic and diluted earnings per share calculation. "

AnswerBasic Earnings per share= Net Income –Dividend on Preference sharesWeighted average no. of shares outstandingAs the dividend on preference shares has not been paid therefore wewill not...