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I tried 4.7 for A and 1.4 for B and it was also wrong. Computing consolidated earnings per share (EPS) Assume the following facts about

image text in transcribedI tried 4.7 for A and 1.4 for B and it was also wrong.

Computing consolidated earnings per share (EPS) Assume the following facts about a parent and its 75% owned subsidiary company: Parent Net income $220,000 Common shares outstanding 50,000 Convertible preferred stock Dividends = $21,300 Convertible into 9,000 shares of common stock Convertible bonds Subsidiary $50,000 30,000 (22,500 = 75% owned by parent) Interest expense after tax = $5,860Convertible into 8,000 shares of common stock a. Compute basic earnings per share $ 4.4 X b. Compute diluted earnings per share $ 4.9 X

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