2. HHQ1 LLC has projected a net income of $1 million USD in 2020. HHQ1 pays $100,000 total dividends to its 100,000 common shareholders outstanding @ the end of 2019 (Jan 01: 80,000 shares outstanding: July 01: 20,000 new shares were issued). The company also has 10,000 convertible preferred stocks ($5 dividend per P.S) and 2000 convertible bonds (10% coupon rate @$1000 par value). In 2020, 80% of the preferred stock holders may convert to common stocks (3 Common shares per preferred share). Also, 100% bondholders are allowed to convert to 2 common shares per bond. Tax rate 40%. Calculate both the basic and diluted EPS for HHQ1 3. A company has a profit margin of 8.8%, total asset turnover of 3.7, assets of $88,000 and liabilities of $25,000. How would the ROE change if profit margin increases to 9.5%, sales decrease by 5% and all balance sheet items stay the same? 4. Lets play communications paid 50,000 USD worth of cash dividends and retained 220,000 USD from their net income in FY 2018. Their total equity at the end of FY 2017 was 330,000 and the end of FY 18 the total equity balance was including some other gains/surplus 585,000 USD. What is their comprehensive income, if any? 5. We'll not play LLC had 1,000,000 average shares outstanding during all of 2017. During 2017, WNP also had 20,000 options outstanding with exercise prices of $45 each. The average stock price of WNP during 2016 was $42 and during 2017 increased 19.05% from '16. For purposes of computing diluted earnings per share, how many shares would be used in the denominator in 2017? What is the basic EPS if reported net income is 1,250,000 in 2017