average market price of $109 and an ending market price of$107/share. Each share of preferred stock is convertible into 5 shares of common stock. 4. 200 $1,000 bonds with a stated interest rate of 10%, convertible into 50 shares of common stock, issued at 105. The premium is being amortized at the rate of $500/year. Compute Carter Construction's Basic Earnings per Share (5 points): Given the information that you have about the options, are they potentially dilutive? Why or why not (3 points)? Given the information that you have about the shares of the 5%, $100 par preferred stock, are they potentially dilutive? Why or why not (3 points)? Given the information you have about the shares of the 7%, $100 par preferred stock, are they potentially dilutive? Why or why not (3 points)? Given the information you have about the 1 0% bonds, are they potentially dilutive? Why or why not (3 points)