Information concerning the capital structure of the Petrock Corporation is as follows: During 2008, Petrock paid dividends
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Information concerning the capital structure of the Petrock Corporation is as follows:
During 2008, Petrock paid dividends of \($1\) per share on its common stock and \($2.40\) per share on its preferred stock. The preferred stock is convertible into 20,000 shares of common stock.
The 8% convertible bonds are convertible into 30,000 shares of common stock. The net income for the year ending December 31, 2008 was \($285,000\), and the company’s income tax rate was 40%.
Required:
1. What was basic EPS for 2008, rounded to the nearest penny?
2. What was diluted EPS for 2008, rounded to the nearest penny?
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