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Calculating EPS and Multiple Securities At the end of 2020, the records of Wolverine Corporation reflected the following. Common stock, $10 par; authorized 200,000 shares:

Calculating EPS and Multiple Securities

At the end of 2020, the records of Wolverine Corporation reflected the following.

Common stock, $10 par; authorized 200,000 shares: issued and outstanding throughout the year,
100,000 shares $1,000,000
Preferred stock, $50 par, 7%, cumulative, convertible into common stock, share for share;
authorized, 20,000 shares; issued and outstanding throughout year, 4,000 shares 200,000
Contributed capital in excess of par, common stock 160,000
Retained earnings (no dividends declared during the year) 940,000
Bonds payable, 10% nonconvertible, issued at par in 2016 300,000
Net income 264,000
Stock options outstanding (all year for 20,000 shares of common stock at $15 per share)
Income tax rate, 25%
Average market price of the common stock during 2020, $25 per share

Required

a. Is this a simple or a complex capital structure?

b. Compute the required EPS amounts.

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