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2. Information relating to the complex capital structure of Rinehart corporation is as follows: 2011 net income: $24,500 2011 income tax rate: 300% Common stock:

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2. Information relating to the complex capital structure of Rinehart corporation is as follows: 2011 net income: $24,500 2011 income tax rate: 300% Common stock: 11,000 shares outstanding $100 par convertible preferred stock: 1,000 shares with each share of preferred stock convertoble into two shares of common stock 7% convertible bonds: $100,000 face value (issued at par), each $1,000 bond convertible into 27 9% convertible bonds: $50,000 face value (issued at par), each $1,000 bond corvertible into so shares of common stock 2011 preferred dividends: $2.50 per share All stocks and bonds have been outstanding for the entire year (a) Prepare a ranking of the order in which the securities would be included in diluted EPS. (b) Compute basic eamings per share. (c) Compute diluted eamings per share

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