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The accountant of Skywalker Corp. (this is a public company) reviewed the draft of the 2150 year end financial statements and had found that it was missing essential information to find the correct calculations of Basic EPS and Diluted EPS.

On January 1, 2150, Skywalker Corp. started the year with 20,000,000 common shares outstanding.

On February 28, issued 3,000,000 common shares.

On April 31, Skywalker Corp. bought back and retired 5,000,000 common shares.

On December 1, Skywalker Corp. issued a 25% stock dividend.

Prior to 2150, the accountant knew that in the Shareholder's Equity section of 2149, Common Shares had unlimited number of shares authorized, with 10,000,000 shares issued and outstanding.

Preferred shares, 17% cumulative, non-convertible shares, 2,000,000 shares issued and outstanding.

The preferred shares have a par-value of $4 per share.

Other information that was noted:

Skywalker Corp. had 10,000 call options issued. Each option was exercisable for one share at $450

The average market price of Skywalker Corp.'s common shares during 2150 was $650.

Skywalker Corp. had 11% convertible bonds. Each $1,000 bond is convertible into 2 common shares.

The value of the bonds was $10,000,000.

Skywalker Corp. had accounting income (before taxes) of $42,500,000 and taxable income of 34,000,000. The tax rate for Skywalker Corp. was 30%.

Required:

1. Calculate the weighted average number of shares.

2. Calculate the basic earnings per share.

3. Calculate the diluted earnings per share.

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