Question

Meyer Corporation reported net income for 2015 of $282,000. Meyer’s fiscal year is the same as...

Meyer Corporation reported net income for 2015 of $282,000. Meyer’s fiscal year is the same as the calendar year. Meyer’s tax rate is 20%. At the beginning of 2015, Meyer had 120,000 shares of $1 par value common shares outstanding. Also at the beginning of 2015, Meyer had 4,000 outstanding options with an exercise price of $25 each. On September 1, Meyer issued 3,000 shares of common stock for $60 per share. Meyer paid dividends of $2 per share to the common shareholders on December 1. Meyer’s average stock price during 2015 was $55 per share. No other potentially dilutive financial instruments are outstanding.

W1 Calculate Meyer’s basic EPS for 2015 to cents.

W2 Calculate Meyer’s diluted EPS for 2015 to cents.

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