1. An analyst gathered the following information about the Metron company:
·Net income equals $15,000
·5,000 shares of common stock issued on January 1, 2009
·10 percent stock dividend issued on June 1, 2009
·1000 shares of common stock were repurchased on July 1, 2009
·1000 shares of 10 percent, par $100 preferred stock each convertible into 8 shares of common were outstanding the whole year 2009
How many common shares should be used in computing the company's basic earnings per share (EPS)?