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Calculate the diluted EPS given the following information. Do not forget to perform dilution tests. Net income effect (numerator) Shares effect (denominator) Basic EPS $1,865,000

Calculate the diluted EPS given the following information.

Do not forget to perform dilution tests.

Net income effect (numerator) Shares effect (denominator)
Basic EPS $1,865,000 300,000
Preferred shares $110,000 10,000
Stock options $0 20,000
Convertible bond $200,000 100,000

B)

4.92

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