In its most recent financial statements, Kenda Corporation reported basic and diluted earnings per share. This implies that Kenda has a simple capital structure. likely has preferred dividends in arrears. has a complex capital structure. is likely a private corporation. QUESTION 2 share amounts would most likely be incorrect? $3.47 $2.89 $3.45 $3.01 QUESTION 3 When applying the if-converted assumption for potentially diluted securities, conversions are assumed to occur at the end of the prior year for hypothetical conversions. beginning of the year for hypothetical conversions regardless of whether the dilutive security was issued during the year or not. middle of the current year for actual conversions. beginning of the current year or on the issue date of the dilutive security if issued during the current year. income of $630,000 for that calendar and fiscal year. Basic earnings per share would be $1.40 $2.10 $0.84 $1.20 QUESTION 5 There are two EPS statistics: basic and diluted. Which of the following statements is correct? Answer not provided the combined sum of common shares and preferred shares outstanding during the period. hypothetical worst-case scenario that considers the effect of potentially dilutive securities