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XYZ company earns a net profit of $550,000, and has $1,500,000 common shares outstanding that sell on the open market for an average of $15 per share....
XYZ company earns a net profit of $550,000, and has $1,500,000 common shares outstanding that sell on the open market for an average of $15 per share. In addition, there are 280,000 options outstanding that can be converted to XYZ company's common stock at $13 each. Company also paid $50,000 to preferred share holder
Please provide the clear calculation on each question and brief explanation with your analysis. .
[1] Calculate XYZ company Earning per share (EPS)
[2] Calculate the number of shares that would have been issued at the market price.
[3] Calculate the shares have been purchased with the proceeds from the options
[4] Calculate the number of shares that could have been purchased from the number of options exercised.
[5] Calculate the incremental number of share to the shares already outstanding.
[6] Calculate the Diluted Earnings per share.
