018 View Policies Current Attempt in Progress Sheridan Corporation had net income of $52,800 for the year ended December 31.2020, and a weighted average number of common shares outstanding of 10,900. The following information is provided regarding the capital structure 1 2. 7% convertible debt, 210 bonds each convertible into 46 common shares. The bonds were outstanding for the entire year The income tax rate is 45% The bonds were issued at par ($1000 per bonds. No bonds were converted during the year 4% convertible, cumulative $110 preferred shares. 1.100 shares issued and outstanding Each preferred share is convertible into 2 common shares. The preferred shares were issued at par and were outstanding the entire year. No shares were converted during the year Calculate the income effect of the diddends on preferred shares Dividends on preferred shares $ eTextbook and Media it e one Snow OPENING 2/14/2 Calculate the basic earnings per share for 2020. (Round answer to 2 decimal places, eg 15.25) Basic earnings per share $ eTextbook and Medial Calculate the after-tax interest paid on the 7% bonds After-tax interest on bonds converted eTextbook and Media 5 Determine an incremental per share effect for 7% bonds. (Round earnings per share to 2 decimal places, eg. 15.25) -/1 306AM Determine an incremental per share effect for 7% bonds. (Round earnings per share to 2 decimal places, eg 15.25) Potentially dilutive security Incremental Numerator Effect 7% Bonds $ eTextbook and Media Incremental Denominator Effect EPS 5 -/1 Determine an incremental per share effect for 4% preferred shares. (Round earnings per share to 2 decimal places, eg 15.25) Potentially dilutive security 4% Preferred shares Incremental Numerator Effect S Incremental Denominator Effect EPS $ eTextbook and Media 205AM eTextbook and Media Rank the potentially dilutive securities from most dilutive to least dilutive. 7% Bonds 4% Preferred shares Rank 1 Rank 2 Anti-dilutive eTextbook and Media Calculate the diluted earnings per share for 2020, using the if-converted method. For simplicity, ignore the requirement to record the debt and equity components of the bonds separately. (Round earnings per share to 2 decimal places, e.g. 15.25) Question 7 of 8 > -/1 Calculate the diluted earnings per share for 2020, using the if-converted method. For simplicity ignore the requirement to record the debt and equity components of the bonds separately. (Round earnings per share to 2 decimal places, eg. 15.25) Numerator $ Basic Sub Total Diluted EPS eTextbook and Media $ Denominator EPS $ Diluted EPS eTextbook and Media lower higher When Sheridan Corporation issued the 7% convertible debt, would the company's interest rate on straight debt have been higher or lower than 7% When Sheridan Corporation issued the 7% convertible debt, the company's interest rate on straight debt have been eTextbook and Media Save for Later .E Attempts: 0 of 3 used Submit Answer DC Snow & Ic 2102