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Computing EPS with Multiple Potentially Dilutive Securities Spencer Inc.'s earnings of $1,100,000 reflect a tax rate of 25%. During the year, Spencer had the

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Computing EPS with Multiple Potentially Dilutive Securities Spencer Inc.'s earnings of $1,100,000 reflect a tax rate of 25%. During the year, Spencer had the following securities outstanding: 240,000 shares of common stock. 10,000 shares of 6%, $100 par, nonconvertible, cumulative preferred stock. 10,000 shares of 6%, $100 par, cumulative preferred stock, each convertible into 1.75 shares of common stock. 1,000 bonds, $1,000 face value, 8% interest, each convertible into 30 shares of common stock (issued at face value). 400 bonds, $1,000 face value, 6% interest, each convertible into 20 shares of common stock (issued at face value). Required a. Compute basic EPS. b. Compute diluted EPS. Note: Enter the earnings per share amounts in dollars and cents, rounded to the nearest penny. Net Income Available to Weighted Avg. Common Basic EPS Diluted EPS $ $ Common Stockholders Per 825,000 x 0 Shares Outstanding 240,000 240,000 $ Share $ 0 3.49 x Check

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