Computing consolidated earnings per share (EPS) Assume the following facts about a parent and its 75% owned subsidiary company: Net income $200,000 Parent $47,000 Subsidiary Common shares outstanding 50,000 Convertible preferred stock Dividends = $19,300 Convertible into 9,000 shares of common stock Convertible bonds a. Compute basic earnings per share $ 3.93 b. Compute diluted earnings per share $ 4.28 26,000 (19,500 75% owned by parent) Interest expense after tax = $5,800Convertible into 7,000 shares of common stock