An excerpt from the statement of financial position of Oriole Limited follows:

ORIOLE LIMITED

Selected Statement of Financial Position Information

At December $31,2023$

Long$-$term debt

Notes payable, $10\%$

$$5,800,000$

$4\%$ convertible bonds payable

$2,500,000$

$6\%$ convertible bonds payable

$3,240,000$

Total long$-$term debt

$$11,540,000$

Shareholders' equity

$$0\mathrm{.}69$ cumulative, no par value, convertible preferred shares $($unlimited number of shares authorized, $650,000$ shares issued and outstanding$)$

$$3,250,000$

Common shares, no par value shares authorized, $3,500,000$ shares issued and outstanding$)$

$33,250,000$

Contributed surplus

$210,000$

Retained earnings

$7,800,000$

Total shareholders' equity

$$44,510,000$

Notes and Assumptions

December $31,2023$

Options were granted$/$written in $2022$ that give the holder the right to purchase $100,000$ common shares at $$9$ per share The average market price of the company's common shares during $2023$ was $$16$ per share. The options expire in $2031$ a no options were exercised in $2023.$

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 face value of $$1,000$ and is convertible into $100$ common shares.

The convertible preferred shares were issued at the beginning of $2023.$ Each preferred share is convertible into one comn share.

The average income tax rate is $25\%.$

The common shares were outstanding during the entire year.

Preferred dividends were not declared in $2023.$

Net income was $$2,968,500$ in $2023.$

No bonds or preferred shares were converted during $2023.$

Calculate the income effect of the dividends on preferred shares.

Dividends on preferred shares $ $$

eTextbook and Media

Calculate basic earnings per share for $2023.($Round answer to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

Basic EPS $ $$

Determine an incremental per share effect for $$0\mathrm{.}69$ preferred shares. $($Round answer to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

$\backslash$table$[[$Potentially dilutive security,$\backslash$table$[[$Incremental$],[$Numerator Effect$]],\backslash$table$[[$Incremental$],[$Denominator Effect$]],$EPS$],[$$$0\mathrm{.}69$ Preferred shares,,,$]]$

eTextbook and Media

Calculate the proceeds from assumed exercise of $100,000$ options. $($Round answer to $0$ decimal places, e$.$g$.1,525.)$

Proceeds from exercise of options

$ $$

Calculate the incremental shares oustanding upon the exercise of options. $($Round answer to $0$ decimal places, e$.$g$.1,525.)$

The incremental shares oustanding upon the exercise of options $$

Calculate the after$-$tax interest paid on the $4\%$ bonds.

After$-$tax interest on $4\%$ bonds converted

$

eTextbook and Media

Determine an incremental per share effect for $4\%$ bonds. $($Round earnings per share to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

$\backslash$table$[[$Potentially dilutive security,$\backslash$table$[[$Incremental$],[$Numerator Effect$]],\backslash$table$[[$Incremental$],[$Denominator Effect$]],$EPS$],[1\%$ Bc $,,,,]]$

Calculate the after$-$tax interest paid on the $4\%$ bonds.

After$-$tax interest on $4\%$ bonds converted

$

eTextbook and Media

Determine an incremental per share effect for $4\%$ bonds. $($Round earnings per share to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

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 share to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

$\backslash$table$[[$Potentially dilutive security,$\backslash$table$[[$Incremental$],[$Numerator Effect$]],\backslash$table$[[$Incremental$],[$Denominator Effect$]],$EPS$],[6\%$ Bonds,$$,,]]$

Rank the potentially dilutive securities from most dilutive to least dilutive.

$4\%$ Bonds

$6\%$ Bonds

$$0\mathrm{.}69$ Preferred shares

Options

Calculate diluted earnings per share for $2023.($Round earnings per share to $2$