PROBLEM # 1 Zeno Incorporated, has 6,000,000 shares of common stock outstanding o December 31, 2010. An additional 1,000,000 shares of common stock were issue on April 1, 2011, and 500,000 mor on July 1, 2011. on October 1, 2011, Zeno issued 25,000, $1,000 face value, 8% convertible bonds. Each bond is convertible into 20 shares of common stock. No bonds were converted into common stock in 2011 . Net income after taxes is $28,000,000 and the tax rate is 25%. Compute EPS and DEPS. Show all computations for the numerators and the denominators. 6