Carla Inc. had 500,000 common shares outstanding for the entire fiscal year ended August 31, 2020. Carla has 100,000 outstanding $2 cumulative, no-par value preferred shares. All shares were outstanding for the full year. Options were written at the start of the fiscal year to purchase 30,000 common shares at $15 per share. The average market price of Carla's common shares during the year ended August 31, 2020 was $25 per share. The options expire in 2029, and none were actually exercised during the current year. Also outstanding for the entire year was a 6% bond with a face value of $4,000,000, convertible to 100,000 common shares. Carla Inc!s net income for the year was $2,700,000, and the income tax rate for the fiscal year was 40%. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately). Your answer is correct. Calculate the income effect of the dividends on preferred shares. $ Dividends on preferred shares 200000 e Textbook and Media X Your answer is incorrect. Calculate Carla Inc's basic earnings per share for the year ended August 31, 2020. (Round answer to 2 decimal places, e.g. 15.25.) $ Basic EPS Calculate the after-tax interest paid on the 6% bonds. $ 192000 After-tax interest on bonds converted e Textbook and Media X Your answer is incorrect. Determine an incremental per share effect for 6% bonds. (Round earnings per share to 2 decimal places, e.g. 15.25.) Incremental Numerator Effect Incremental Denominator Effect Potentially dilutive security EPS 6% Bonds $ 192000 $ e Textbook and Media X Your answer is incorrect. Calculate the proceeds from assumed exercise of 30,000 options. $ Proceeds from exercise of options Calculate the incremental shares oustanding upon the exercise of options. The incremental shares oustanding upon the exercise of options e Textbook and Media Your answer is correct. Rank the potentially dilutive securities from most dilutive to least dilutive. 6% bonds Rank 2 Options Rank 1 Calculate Carla Inc!s diluted earnings per share for the year ended August 31, 2020. (Round calculations of EPS to 3 decimal places, e.g. $3.545 and provide final answer to 2 decimal places, e.g. 15.25.) Numerator Denominator EPS Basic EPS Options Sub Total 6% bonds $ tA $ Diluted EPS