8. Blue Cab Company had 50,000 shares of common stock outstanding on January 1, 2021. On April 1, 2021, the company issued 20,000 shares of common stock. The company had outstanding fully vested incentive stock options for 5,000 shares exercisable at $10 that had not been exercised by its executives. The end-of-year market price of common stock was $13 while the average price for the year was $12. The company reported net income in the amount of $269,915 for 2021. What is the diluted earnings per share (rounded)

$4.10

Explanation:

total weighted stocks:

January 1 = 50,000 x 12/12 = 50,000

April 1 = 20,000 x 9/12 = 15,000

total = 65,000

diluted stocks = 5,000 - (5,000 x 10) / 12 = 833.33 ≈ 833

net income = $269,915

diluted EPS = net income - preferred dividends / (weighted common stocks + diluted stocks) = $269,915 / (65,000 + 833) = $4.0999 = $4.10

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.

the first one $24,630