Peyton Approved
		Earnings per Share
		For Year Ended 12/31/20XX
		Net Income
		Less: Preferred Dividends
		Earnings Available to Common Shareholders
		Common Shares Outstanding
			Basic EPS
		If all preferred shares are converted:
		Net Income
		Additional Common Shares
		Common Shares Outstanding after conversion
		EPS if preferred shares converted
			Preferred shares are antidilutive
		If all bonds are converted:
		Net Income
		Less: Preferred Dividends
		Add back interest on bonds, net of income tax
		Earnings Available to Common Shareholders
		Additional Common Shares
		Common Shares Outstanding after conversion
		Fully diluted EPS
	Peyton plans to raise $1,000,000 million of additional capital for the coming year. They anticipate
	that it will enable them to earn an additional $600,000 after tax. What would be the impact on
	earnings per share if the raise the $1,000,000 by:
		a) issuing 10,000 share of 10% $100 par value convertible preferred stock, where share
		can be coverted into 10 shares of Peyton common stock?
		b) issuing $1,000,000 of 8% convertible bond, each $1,000 bond can be converted into?
		5 shares of Peyton common stock?
		c) $500,000 of each of the above?
		Net Income
		Less: Preferred Dividends
		Earnings Available to Common Shareholders
		Common Shares Outstanding
			Basic EPS
	a	If all preferred shares are converted:
		Net Income
		Additional Common Shares
		Common Shares Outstanding after conversion
		EPS if preferred shares converted
			Preferred shares are antidilutive
	b	If all bonds are converted:
		Net Income
		Less: Preferred Dividends
		Add back interest on bonds, net of income tax
		Earnings Available to Common Shareholders
		Additional Common Shares
		Common Shares Outstanding after conversion

Ner income is 18,740,877.93