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A company has the following sequence of events regarding its stock: > The company had 1,000,000 shares outstanding at the beginning of this year. >
A company has the following sequence of events regarding its stock: > The company had 1,000,000 shares outstanding at the beginning of this year. > On April 1, the company repurchased 200,000 shares of common stock at par. > On May 20, the company declared a 5-for-4 stock split. > On November 1, the company sold 500,000 shares of common stock. The company also reports the following information for this year: > Net income is $1,000,000. > The company paid $200,000 in preferred dividends. > The company paid $400,000 in common dividends. > The company had $5 million of 9% convertible bonds, convertible into a total of 500,000 shares. In addition, the company had 250,000 shares of preferred stocks, all of which are convertible into 5 shares of common equity each. Assuming a tax rate of 30%, calculate the company's basic EPS and diluted EPS
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