#2

$300,000 income; 100,000 c/s shares o/s all year

$400,000, 10% convertible bond issue o/s all year convert to 16,000 shares of c/s

Tax rate 40%

REQUIRED: (show your work)

1. Calculate Basic EPS

2. Calculate Diluted EPS

#3

$725,000 income; 500,000 c/s shares o/s all year

The only common stock equivalent is 25,000 of 5%, $100 par cumulative, convertible preferred stock o/s all year each p/s share = 6 c/s shares

REQUIRED: (show your work)

1. Calculate Basic EPS

2. Calculate Diluted EPS