The information below pertains to Payson Company
c16BProblems.inddThe information below pertains to Payson Company for 2015…. income for the year6% convertible bonds issued at par ($1,000 per bond); each bond is convertible into60 shares of common stock4% convertible, cumulative preferred stock, $100 par value; each share is convertibleinto 4 shares of common stock Common stock, $1 par valueTax rate for 2015Average market price of common stock$8,670,0005,000,0002,500,000 9,500,000 40% $18 per shareThere were no changes during 2015 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 120,000 shares of common stock at $12 per share.Instructions(a) Compute basic earnings per share for 2015. (b) Compute diluted earnings per share for 2015.
