ExercisGalculate basic EPS, and explain the EPS effect of convertible preferred Mamba Metals, Ltd reported
net income of $ for its fiscal year ended January At the beginning of that fiscal year,
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shares of common stock were outstanding. On October an additional shares were issued.
No other changes in common shares outstanding occurred during the year. Also during the year, page
the company paid the annual dividend on the shares of $ par value preferred stock
that were outstanding the entire year.
Required:
a Calculate basic earnings per share of common stock for the year ended January
b If Mamba Metals, Ltds preferred stock were convertible into common stock, what additional calculation
would be required?
