Question
Edwards Corporation has three potentially dilutive securities. Computation of the antidilution sequencing recorded the following: Security Increase in Income Increase in Common Shares Convertible Preferred
Edwards Corporation has three potentially dilutive securities. Computation of the antidilution sequencing recorded the following:
Security Increase in Income Increase in Common Shares
Convertible Preferred Stock $30,000 10,000
Stock Warrants $0 5,000
Convertible Bonds $15,000 3,000
What is the correct order of entry into the EPS computation?
A. stock warrants, convertible preferred stock, convertible bonds
B. convertible preferred stock, stock warrants, convertible bonds
C. convertible bonds, convertible preferred stock, stock warrants
D. stock warrants, convertible bonds, convertible preferred stock
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