Use the below facts for each of years 201020112012 and 2013 to compute Basic EPS and Diluted EPS for 2013.(Details please.)
2010 a company issued 1000 10-year $1000 face value bonds at 101. The stated interest rate of the bonds is 6% and interest is paid semiannually. Each bond
is convertible to 30 shares of common stock; this company also issued 100000 shares of 6% cumulative preferred stock with a par value of $100 per share. Each
share is convertible to 20 shares of preferred stock. The preferred stock is still outstanding at the end of 2013.
2011 the company issued 1000 5-year $1000 face value bonds at 98. The stated interest rate of the bonds is 15% and interest is paid semiannually. Each bond
is convertible to 20 shares of common stock; This company also granted compensatory stock options to key executives. The options allow the executives to
purchase 1000000 shares of common stock at $45 per share. The service period for the options is the three years beginning January 1 2012.
2012 the company issued 10000 common stock warrants that each allow holders to purchase 3 shares for $48 per share. They expire on December 31 2014.
2013 began the year with 23450000 shares of common stock outstanding; issued 1000 5-year $1000 face value bonds at 105 on July 1 2013. The stated
interest rate of the bonds is 8% and interest is paid semiannually. Each bond is convertible to 20 shares of common stock; on March 15 this company issued
45000 shares of common stock for $49 per share when the par value was $1. On June 30 this company purchased 30000 shares of common stock for $50 per share;
On September 15 this company declared a 3-for-1 stock split; for the year ended December 31 2013 this company had net income of 280000000.
General Assumptions: all discounts and premiums on bonds payable are amortized on a straight-line basis; The tax rate for 2013 was 35%; the average stock price
for 2013 was $58; all preferred stock dividends are paid in accordance with the preferred share agreement(s); Dividends of $1.15 per share were paid to common