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The information below pertains to Baker Co. for 2017. Net...

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Accounting

The information below pertains to Baker Co. for 2017.

Net income 2017

$1,200,000

8% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock

$2,000,000

6% convertible, non-cumulative, preferred stock, $100 par value, each share is convertible into 3 shares of common stock

$4,000,000

Common stock, $10 par value

$6,000,000

Tax rate for 2017

40%

Average market share price of common stock for 2017

$25 per share

The company did have common stock options (granted last year) to purchase 75,000 shares of common stock at a price of $20 per share.

During the year, the following transactions took place related to equity:

May 1 - Issued 50,000 shares of common stock for $28 per share

June 1 Declared a 4% stock dividend effective on July1.

Compute basic EPS for 2017

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