(1) Assume that the bonds in Part (1) are NOT convertible. The company had Convertible, cumulative preferred stock. These shares were issued on July 1 , 2021 and each $100 par share is entitled to a 5% dividend. There are 10,000 shares outstanding and each share is convertible into five shares of common stock. NO dividends were paid in 2021. In July of 2022 , the company paid both the 2021 and 2022 preferred dividends. (a) Compute the basic EPS for 2022 (b) Compute the diluted EPS for 2022 OTE: In all three parts, for Basic EPS purposes, the weighted average number of common lares outstanding was 136,000 . (1) A partial income statement for a company for the year 2022 is presented below: The $100,000 interest relates to convertible bonds, $1,000,000 par, 10% interest. Each $1,000 bond is convertible into 25 common shares. The bonds were issued in 2020 1 Bondholders have the option to convert the bonds starting in 2025. (a) Compute the basic EPS for 2022 (b) Compute the diluted EPS for 2022 he company had Convertible, cumulative preferred stock. These shares were issued on July 1, 021 and each $100 par share is entitled to a 5% dividend. There are 10,000 shares outstanding ind each share is convertible into five shares of common stock. NO dividends were paid in 2021 . In July of 2022, the company paid both the 2021 and 2022 preferred dividends. (a) Compute the basic EPS for 2022 (b) Compute the diluted EPS for 2022 (1) Assume that the bonds in Part (1) are NOT convertible. The company had Convertible, cumulative preferred stock. These shares were issued on July 1 , 2021 and each $100 par share is entitled to a 5% dividend. There are 10,000 shares outstanding and each share is convertible into five shares of common stock. NO dividends were paid in 2021. In July of 2022 , the company paid both the 2021 and 2022 preferred dividends. (a) Compute the basic EPS for 2022 (b) Compute the diluted EPS for 2022 OTE: In all three parts, for Basic EPS purposes, the weighted average number of common lares outstanding was 136,000 . (1) A partial income statement for a company for the year 2022 is presented below: The $100,000 interest relates to convertible bonds, $1,000,000 par, 10% interest. Each $1,000 bond is convertible into 25 common shares. The bonds were issued in 2020 1 Bondholders have the option to convert the bonds starting in 2025. (a) Compute the basic EPS for 2022 (b) Compute the diluted EPS for 2022 he company had Convertible, cumulative preferred stock. These shares were issued on July 1, 021 and each $100 par share is entitled to a 5% dividend. There are 10,000 shares outstanding ind each share is convertible into five shares of common stock. NO dividends were paid in 2021 . In July of 2022, the company paid both the 2021 and 2022 preferred dividends. (a) Compute the basic EPS for 2022 (b) Compute the diluted EPS for 2022
