An excerpt from the statement of financial position of Blossom Limited follows: 1. Options were granted/written in 2022 that give the holder the right to purchase 100,000 common shares at $8 per share. The average market price of the company's common shares during 2023 was $16 per share. The options expire in 2031 and no options were exercised in 2023 . 2. The 4% bonds were issued in 2022 at face value. The 6% bonds were issued on June 1, 2023, at face value. Each bond has a face value of $1,000 and is convertible into 100 common shares. 3. The convertible preferred shares were issued at the beginning of 2023 . Each preferred share is convertible into one common share. 4. The average income tax rate is 25% 5. The common shares were outstanding during the entire year. 6. Preferred dividends were not declared in 2023. 7. Net income was $2,544,000 in 2023. 8. No bonds or preferred shares were converted during 2023. Part 1 Calculate the income effect of the dividends on preferred shares: Calculate the income effect of the dividends on preferred shares. Calculate basic earnings per share for 2023 . (Round answer to 2 decimal places, eg. 15.25) Basic EPS $ eTextbook and Media Attempts:unlimited Determine an incremental per share effect for $0.69 preferred shares, (Round answer to 2 decimal places e $.15.25. ) Calculate the proceeds from assumed exercise of 100,000 options. (Round answer to 0 decimal places, es. 1,525.) Proceeds from exercise of options $ Calculate the incremental shares oustanding upon the exercise of options. (Round answer to 0 decimal places, e3. 1,525.) The incremental shares oustanding upon the exercise of options. eTextbook and Media Calculate the after-tax interest paid on the 4% bonds. After-tax interest on 4% bonds converted eTextbook and Media Sive for Later: Attempts: unlimited Determine an incremental per share effect for 4% bonds. (Round eamings per share to 2 decimal places, e. . 15.25) Calculate the after-tax interest paid on the 6% bonds. After-tax interest on 6% bonds converted $ eTextbook and Media Determine an incremental per share effect for 6% bonds. (Round earnings per shore to 2 decimal places, eg. 15.25.) Rank the potentially dilutive securities from most dilutive to least dilutive. 4% Bonds 6% Bonds $0.69 Preferred shares Options eTextbook and Media Calculate diluted earnings per share for 2023 . (Round eamings per share to 2 decimal places, eg. 15.25.) An excerpt from the statement of financial position of Blossom Limited follows: 1. Options were granted/written in 2022 that give the holder the right to purchase 100,000 common shares at $8 per share. The average market price of the company's common shares during 2023 was $16 per share. The options expire in 2031 and no options were exercised in 2023 . 2. The 4% bonds were issued in 2022 at face value. The 6% bonds were issued on June 1, 2023, at face value. Each bond has a face value of $1,000 and is convertible into 100 common shares. 3. The convertible preferred shares were issued at the beginning of 2023 . Each preferred share is convertible into one common share. 4. The average income tax rate is 25% 5. The common shares were outstanding during the entire year. 6. Preferred dividends were not declared in 2023. 7. Net income was $2,544,000 in 2023. 8. No bonds or preferred shares were converted during 2023. Part 1 Calculate the income effect of the dividends on preferred shares: Calculate the income effect of the dividends on preferred shares. Calculate basic earnings per share for 2023 . (Round answer to 2 decimal places, eg. 15.25) Basic EPS $ eTextbook and Media Attempts:unlimited Determine an incremental per share effect for $0.69 preferred shares, (Round answer to 2 decimal places e $.15.25. ) Calculate the proceeds from assumed exercise of 100,000 options. (Round answer to 0 decimal places, es. 1,525.) Proceeds from exercise of options $ Calculate the incremental shares oustanding upon the exercise of options. (Round answer to 0 decimal places, e3. 1,525.) The incremental shares oustanding upon the exercise of options. eTextbook and Media Calculate the after-tax interest paid on the 4% bonds. After-tax interest on 4% bonds converted eTextbook and Media Sive for Later: Attempts: unlimited Determine an incremental per share effect for 4% bonds. (Round eamings per share to 2 decimal places, e. . 15.25) Calculate the after-tax interest paid on the 6% bonds. After-tax interest on 6% bonds converted $ eTextbook and Media Determine an incremental per share effect for 6% bonds. (Round earnings per shore to 2 decimal places, eg. 15.25.) Rank the potentially dilutive securities from most dilutive to least dilutive. 4% Bonds 6% Bonds $0.69 Preferred shares Options eTextbook and Media Calculate diluted earnings per share for 2023 . (Round eamings per share to 2 decimal places, eg. 15.25.)
