peyton plans to raise $1,000,000 million of additional capital for the coming year. They anticipate that is will enable them to earn an additional $600,00 after tax. What would be the impact on earnings per share if they raise $1,000,000 by issuing $10,000 shares of 10% $100 par value convertible preferred stock, where shares can be converted into 10 shares of Peyton common stock? issuing $1,000,000 of 8% convertible bond, each $1,000 can be converted into 5 shares of Peyton common shares?

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
EPS if Preferred Shares converted (Diluted EPS)
Net Income
Less: Preferred Dividends
Add back interest on bonds, net of income tax
Earnings Available to Common Shareholders
Additional Common Shares Preferred Stockholders
Additional from Bonds
Common Shares Outstanding
EPS if Bonds and Preferred Shares
are converted (Diluted EPS)