Answer Happy

On 1 January 2021, Warren Corporation had 1,200,000 ordinary
shares outstanding. During 2021, the company has the following
transactions affecting its’ ordinary shares.
(i) On 1 March, the corporation issued 150,000 new shares to
raise additional capital. (ii) On 1 July, the corporation declared
and issued a 2-for-1 share split.
(iii) On 1 October, the corporation purchased on the market
600,000 of its own outstanding shares and retired them.
(iv) Warren Corporation had 100,000 shares of 9%, $10 par,
non-cumulative preference shares outstanding for the entire year.
The company declared and paid the preference dividend in 2021.
(v) The net income of Warren Corporation for 2021 is
$240,000.
- Warren Corporation granted 1,000,000 share options in 2020. •
Each option could be exercised for ONE ordinary share at $8.
• The average market price of Warren Corporation’s ordinary
shares during 2021 was $20 per share.
• None of the share options was exercised as of 31 December
2021.
ai)Compute the weighted-average number of ordinary shares
outstanding for 2021.
aii)Compute the basic earnings per share for 2021
aiii)Compute the diluted earnings per share for 2021