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A company has basic EPS of $1.29 per share. If the tax rate is 30%, which of the following securities would be dilutive? Cumulative 8%,

A company has basic EPS of $1.29 per share. If the tax rate is 30%, which of the following securities would be dilutive?

  1. Cumulative 8%, $50 par preferred stock
  2. Ten (10%) percent convertible bonds, with each $1,000 bond convertible into 20 shares of common stock.
  3. Seven (7%) percent convertible bonds, with each $1,000 bond convertible into 40 shares of common stock.
  4. Six (6%) percent,$100 par cumulative convertible preferred stock with each preferred share convertible into 4 shares of common stock.

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