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Oriole Corporation had net income of $54,100 for the year ended December 31, 2020, and a weighted average number of common shares outstanding of 11,100. The following information is provided regarding the capital structure: 1. 7% convertible debt, 250 bonds each convertible into 43 common shares. The bonds were outstanding for the entire year. The income tax rate is 45%. The bonds were issued at par ($1,000 per bond). No bonds were converted during the year. 2. 3% convertible, cumulative $100 preferred shares, 1,000 shares issued and outstanding. Each preferred share is convertible into 2 common shares. The preferred shares were issued at par and were outstanding the entire year. No shares were converted during the year. Calculate the income effect of the dividends on preferred shares. 55 Dividends on preferred shares eTextbook and Media Calculate the basic earnings per share for 2020. {Round answer to 2 decimal places, (2.3. 15.25.} $ Basic earnings per share Calculate the after-tax interest paid on the 7% bonds. After-tax interest on bonds converted $ eTextbook and Media Determine an incremental per share effect for 7% bonds. (Round earnings per share to 2 decimal places, e.g. 15.25.) Incremental Incremental Potentially dilutive security Numerator Effect Denominator Effect EPS 7% Bonds to $ eTextbook and MediaDetermine an incremental per share effect for 3% preferred shares. (Round earnings per share to 2 decimal places, e.g. 15.25.) Incremental Incremental Potentially dilutive security Numerator Effect Denominator Effect EPS 3% Preferred shares to e Textbook and Media Rank the potentially dilutive securities from most dilutive to least dilutive. 7% Bonds 3% Preferred shares eTextbook and MediaCalculate the diluted earnings per share for 2020, using the ifconverted method. For simplicity, ignore the requirement to record the debt and equity components of the bonds separately. (Round earnings per share to 2 decimal places, 9.3. 15.25.) Numerator Denominator EPS Basic $ | l $ | l I l l SubTotal | l | l I l l $ l l $ | Diluted EPS eTextbook and Media When Oriole Corporation issued the 7% convertible debt, would the company's interest rate on straight debt have been higher or lower than 7%? When Oriole Corporation issued the 7% convertible debt, the company's interest rate on straight debt have been | I than 7%