On December 31, 2003, Masters Inc. had outstanding 180,000 shares of common stock. Net income for 2003 was ₱285,000. Outstanding options (granted July 1, 2003) to purchase 15,000 shares of common stock at ₱20 per share had not been exercised by December 31, 2003. During 2003, market prices for the common stock were: July 1, 2003- ₱18 per share December 31, 2003- ₱32 per share Average market- ₱25 per share REQUIREMENTS: (1) Compute the BASIC EARNINGS PER SHARE for 2003. (2) Compute the DILUTED EARNINGS PER SHARE for 2003.

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.