Question
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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