At the end of $20$X$1$ the records of the Katlyn Cascayan Corporation reflected the

following:

Bonds Payable, $10\%,$ convertible into $12,500$ common shares, conversion date is set starting January $1,20$X$5$

$$300,000$

Preferred Stock, $$3\mathrm{.}50$ Cumulative, convertible into common stock share for share $($one for one$),10,000$ shares issued, and outstanding throughout the year

$ $1,000,000$

Common share, no par value, authorized unlimited number of shares; issued and outstanding throughout the year, $100,000$ shares

$ $1,160,000$

Other Contributed Capital$-$ Executive Stock Options, issued in $1998,$

$20,000$ shares at an option price of $$20\mathrm{.}00$ per share

$$100,000$

Retained Earnings $($no dividends were declared during the year$)$

$$940,000$

The income from continued operations was

$$190,000$

Gain from Discontinued Operations $($net of taxes$)$

$$20,000$

Net Income

$$210,000$

a$.$ The after tax rate of return on the net assets is

$20\mathrm{.}0\%$

b$.$ The average income tax rate is

$30\mathrm{.}0\%$

c$.$ The market price of the common share on December $31,20$X$1$ was

$ $25\mathrm{.}00$

$1.$ What kind of capital structure is this, and why?

$2.$ What kind of EPS presentation is required?

$3.$ Compute the required EPS amounts $($show all computations and assume that all amounts are material$).$