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11) Centurion, Inc. has four potentially dilutive securities. Net income for the year is $900,000 and the weighted average common shares outstanding is 600,000 shares.

11) Centurion, Inc. has four potentially dilutive securities. Net income for the year is $900,000 and the weighted average common shares outstanding is 600,000 shares. Computation of the antidilution sequencing recorded the following:

Security

Increase in Income

Increase in Common Shares

Convertible Preferred Stock

$30,000

12,000

Stock Warrants

$0

7,000

Stock Options

$0

(8,000)

Convertible Bonds

$95,000

80,000

Required: Show all computations to determine your final answer.

a) Write the basic equation for EPS and compute basic EPS.

b) Determine the order of entry into the dilutive EPS computation.

c) Compute final diluted EPS.

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