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For each of the following independent transactions that occurred during Year 3, calculate the effect on both the numerator and denominator of diluted earnings per

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For each of the following independent transactions that occurred during Year 3, calculate the effect on both the numerator and denominator of diluted earnings per share (DEPS). Assume that the company's EPS for Year 3, before taking into account the effect of the transactions presented below, is $5. The company's effective tax rate is 40%. During Year 3, the average market price of the company's common stock was $8. Enter the appropriate amounts in the designated cells below. Enter all amounts as positive values. Round all amounts to the nearest whole number. If no entry is necessary, enter a zero (0) Transaction DEPS Numerator DEPS Denominator 123 123 1. On March 31, the company Click to answer 123 issued 6,000 common shares for $10,000 in cash. 2. On January 1, the 123 company issued to its employees stock options to purchase 20,000 of the company's shares of common stock at $10 per share. These stock options were not exercised during the year. 3. Unexercised call options to 123 purchase 50,000 shares of the company's common stock at $5 per share were outstanding at the beginning and the end of the year. 4. During Year 3, the company had outstandin 1,000 10%, $1,000 par CLICK/TAP HERE TO SEE WORKSPACE > Click to answer 123 I 123 123 Transaction DEPS Numerator DEPS Denominator 123 123 Click to answer 123 123 123 123 1. On March 31, the company issued 6,000 common shares for $10,000 in cash. 2. On January 1, the company issued to its employees stock options to purchase 20,000 of the company's shares of common stock at $10 per share. These stock options were not exercised during the year. 3. Unexercised call options to purchase 50,000 shares of the company's common stock at $5 per share were outstanding at the beginning and the end of the year. 4. During Year 3, the company had outstanding 1,000 10%, $1,000 par convertible bonds. The bonds were originally issued at par on January 1, Year 1, and each bond is convertible into 15 shares of common stock. 123 123

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