Grouper Corporation had a net income for the current year ending December 31, 2021 of $1,208,000. Throughout 2021 the following items were outstanding: 399,000 common shares 21,000 Class A $3 cumulative preferred shares that were convertible to common shares at a rate of 1.1 49,500 Class B $4 non-cumulative preferred shares that were convertible at a rate of one common share for every two preferred shares. $507,500,8% bonds that were convertible to 14,500 common shares $300,000, 10% bonds convertible to 9,500 common shares . No dividends were declared or paid in 2021. Grouper's tax rate is 25%. Wel'e declared or paid in 2021. Grouper's tax rate is 25%. Your answer is correct. Calculate the income effect of the dividends on Class A preferred shares. Dividends on Class A preferred shares $ 63000 e Textbook and Media 0.45/0.45 Question Part Score Question Part Score 0.45/0.45 Your answer is correct. Calculate the income effect of the dividends on Class B preferred shares. 0 Dividends on Class B preferred shares e Textbook and Media 0.45/0.45 Question Part Score Your answer is correct Calculate basic earnings per share. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately). (Round answer to 2 decimal places of 15.25) $ Basic earnings per share 287 e Textbook and Media Question Part Score 0.45/0.45 Your answer is correct Your answer is correct. Determine an incremental per share effect for 8% bonds. (Round earnings per share to 2 decimal places, es 15.25.) Potentially dilutive security 8% Bonds Incremental Numerator Effect Incremental Denominator Effect EPS 30450 14500 2.1 e Textbook and Media Your answer is correct Calculate the after-tax interest paid on the 10% bonds. After-tax interest on 10% bonds converted 22500 e Textbook and Media Your answer is partially correct. Determine an incremental per share effect for 10% bonds. (Round earnings per share to 2 decimal places, es 1525) Potentially dilutive Incremental Incremental security Numerator Effect Denominator Effect EPS 10% Bonds $ 22500 2500 e Textbook and Media TO Your answer is correct. Determine an incremental per share effect for Class A preferred shares. (Round earnings per share to 2 decimal places, es 15.25) Potentially dilutive Incremental Incremental security Numerator Effect Denominator Effect Class A preferred shares 63000 21000 EPS $ e Textbook and Media - Your answer is partially correct. Rank the potentially dilutive securities from most dilutive to least dilutive. Class B preferred shares Rank 1 8% bonds Rank 2 10% bonds Rank 3 Class A preferred shares Rank 4 e Textbook and Media Calculate diluted earnings per share. (Round calculations of EPS to 3 decimal places, es $3.545 and provide final answer to 2 decimal places, es. 15.25.) Numerator Denominator EPS $ Basic Class B preferred shares Sub Total 8% bonds Sub Total 10% bonds $ s
