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Centurion, Inc. has 4 potentially dilutive securities. Net income for the year is $900,000 and the weighted average common shares outstanding is 600,000 shares. Computation
Centurion, Inc. has 4 potentially dilutive securities. Net income for the year is $900,000 and the weighted average common shares outstanding is 600,000 shares. Computation of the antidilution sequencing recorded the following:
Security Increase in Income Increase in Common Shares
Convertible Preferred Stock $30,000 12,000
Stock Warrants $0 7,000
Stock Options $0 (8,000)
Convertible Bonds $95,000 80,000
a) Compute basic EPS.
b) Determine the order of entry into the dilutive EPS computation.
c) Compute final diluted EPS.
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