Earnings per Share

Parent Sub

Internally generated income $$800,000$ $$480,000$

Weighted Average Common Shares $300,000100,000$

Preferred Shares Outstanding $($$$100$ par, $6\%)22,00012,000$

Convertible Bonds Payable $$900,000$ $$800,000$

Warrants to acquire Parent common stock $40,000$

$1)$ The Parent owns $80\%$ of the Sub

$2)$ None of the Sub$$s Preferred Shares are held by the Parent, none of the Parent$$s Preferred Shares are owned by the Sub

$3)$ The Parent$$s Preferred stock is convertible into $42,000$ common shares

$4)$ The Sub$$s Preferred stock is convertible into $18,000$ common shares.

$5)$ The Sub$$s convertible Bonds Payable pay an interest rate of $8\%$ and are convertible into a total of $12,000$ shares of common stock, tax rate is $30\%.$ None of the Sub$$s Bonds are held by the Parent.

$6)$ The Parent$$s convertible Bonds Payable pay an interest rate of $7\%$ and are convertible into a total of $15,000$ shares of common stock, tax rate is $40\%.$ None of the Parent$$s Bonds are held by the Sub.

$7)$ Each warrant entitles the holder to purchase one share of the Parent$$s common stock. The warrants to acquire Parent$$s stock were issued January $1$st of this year, Exercise price is $$50$; the stock price at the end of each quarter was $$48(1$Q$),$ $$52(2$Q$),$ $$53(3$Q$)$ and $$55(4$Q$).$ The Sub does not own any of the Parent$$s warrants.

Required: SHOW ALL CALCULATIONS $!!!!!!!$ Round all calculations to the nearest $$\mathrm{.}01$ and the nearest share

$1)$ Calculate Basic EPS for the Sub

$2)$ Calculate Diluted EPS for the Sub

Converting Preferred Shares only

Convertible Bonds only

Converting both

$3)$ Calculate Basic Consolidated EPS

$4)$ Calculate Diluted Consolidated EPS

Convertible Preferred Shares only

Convertible Bonds only

Converting both

Converting both with warrants