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Problem (10 points). Santiago Enterprises has the following potentially dilutive securities that it has issued prior to the current fiscal year. SANTIAGO ENTERPRISES POTENTIALLY
Problem (10 points). Santiago Enterprises has the following potentially dilutive securities that it has issued prior to the current fiscal year. SANTIAGO ENTERPRISES POTENTIALLY DILUTIVE SECURITIES FOR CALCULATING DILUTED Long Term Debt: EARNINGS PER SHARE AT BEGINNING OF CURRENT FISCAL YEAR Bonds Payable, 8%, issued in denominations of $1,000 at par, each bond is convertible into 15 shares of common stock Stockholders' Equity: Preferred Stock, $25 par value, 5% annual dividend rate, cumulative and nonparticipating, each share is convertible into 2.5 shares of common stock Stock Options Outstanding, 100,000 options, $15 option exercise price $ 1,000,000 1,000,000 The company's average stock price for the year is $25 and the price at the end of the fiscal year is $21. The company's average tax rate for the year is 30%. REQUIRED: Calculate the per share effects for each of these potentially dilutive securities that would be used to calculate the company's diluted earnings per share for the year. Round your answers to two decimal places.
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