6. Assume there are two dilutive convertible securities. The one that recalculate earnings per share is the security with the a. bigger earnings per share effect ratio. b. smaller earnings per share effect ratio. c. bigger effect on the numerator (carnings) d. smaller effect on the denominator (shares). 7. When computing basic EPS, the numerator includes net income minus the a. present value of stock options b. preferred dividends paid c. cost of interest paid on bonds, net of tax d. cash paid for dividends during the year weighted-average shares of common stock outstanding for the year b. number a r of shares of common shares outstanding stock at the end of the year largest number of common shares outstanding during the year total C. d. of common and preferred shares outstanding during the year 9. Which one of the following does not require the computation of diluted earnings per share? a convertible bonds b. stock warrants c. preferred stock d. stock options Gray Corporation reported $200,000 in interest expense for the current year for bonds that were issued in prior years. Gray's tax rate is 40%. By what amount is the numerator of diluted EPS positively adjusted? a- so b. $80,000 c. $120,000 d. $200,000 10. 2450