= Homework: Week Four Question 10, E20-6 (similar to) Part 2 of 2 HW Score: 51.48%, 10.81 of 21 points Points: 0.5 of 1 Save On January 1, Pretax Star Inc. had 610,000 common shares outstanding. The company issued an additional 132,000 shares on March 1. Pretax Star also issued $1,100,000 par value, 2% nonconvertible, noncumulative preferred stock on October 1 and declared dividends for the current quarter. On April 30, the firm issued $5,120,000, 3% convertible bonds outstanding (i.e., $153,600 coupon interest per year) that are convertible into 75,000 shares of common stock. The firm issued all bonds at par and did not convert any during the current year. The company is subject to a 40% effective tax rate and net income is $7,000,000. Requirement Based on this information, compute basic and diluted earnings per share for the current year. Calculate the basic earnings per share (EPS) for the current year. (Round any intermediary computations to the nearest whole number, but then round the EPS to the nearest cent, $X.XX.) Basic EPS for the current year is $ 9.71 Calculate the diluted EPS for the current year. (Round any intermediary computations to the nearest whole number, but then round the EPS to the nearest cent, $X.XX.) Diluted EPS for the current year is $ Help me solve this Etext pages Get more help Clear all Check answer