During 2021, Farewell Inc. had 506,000 shares of common...
90.2K
Verified Solution
Link Copied!
Question
Accounting
During 2021, Farewell Inc. had 506,000 shares of common stock and 53,000 shares of 6% cumulative preferred stock outstanding. The preferred stock has a par value of $100 per share. Farewell did not declare or pay any dividends during 2021. Farewell's net income for the year ended December 31, 2021, was $3.1 million. The income tax rate is 25%. Farewell granted 16,000 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 $35 per share. The options vest after one year. The market price of the common stock averaged $36 per share during 2021. What is Farewell's diluted earnings per share for 2021, rounded to the nearest cent
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
