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Hi, I need help calculating the Basic and Diluted EPS for 2010 using information from Exhibit 1 and the Excel Spreadsheet. Thanks! fNote Net Income

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Hi, I need help calculating the Basic and Diluted EPS for 2010 using information from Exhibit 1 and the Excel Spreadsheet. Thanks!

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\fNote Net Income Less: 1st Preferred Dividend 2nd Preferred Dividend Basic EPS Warrants 4 2nd Preferred Dividend 2 Convertible debentures 3 1st preferred shares 1 Diluted EPS Note 1: 1st preferred Shares 7% 1st preferred Annual Dividend Shares Dilutive impact Note 2: Second Preferred Shares 3% Second preferred Annual Dividend 9/12 of year issued ($6,000 x 9/12) Shares 9/12 of year issued Net Earnings Available to Common Shareholders Weighted Average Number of Common Shares Basic & Diluted EPS Therefore, potentially diluted Note 3: Convertible Debentures 9% Convertible debenture Annual, after tax interest Shares Dilutive impact Therefore, potentially dilutive Note 4: Warrants Shares Exercise price Average market price Therefore, "in the money" and dilutive Cash raised on exercise Number of shares repurchased Incremental shares Note 5: Options Shares Exercise price Average market price Therefore, "out the money" and notdilutive

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