Question 1 (1 point) XYZ Inc's total common shares outstanding are 67,350 on Dec 31. Year 3, and 79,740 on Dec 31, Year 4. The company also has $395,840 of preferred shares cost balance. The preferred shares have a dividend rate of 3.37%. If the company's net income is $475,910 in Year 4, what is the company's price earnings (P/E) ratio in Year 4 if the average share price is observed to be $89.81 per share? Assume there are no other transactions during the year in the equity balances other than the net income and the dividends. Also assume that the simple average number of common shares works out to be the same as the weighted average number of common shares. 13.21 13.57 13.92 14.28 14.64 Question 2 (1 point) XYZ Inc earned net income of $263,660 during the current fiscal year and had 87,890 common shares outstanding throughout the year. Also outstanding all year were $703,090 carrying value of 8.65%-coupon bonds convertible into 22,850 common shares in total. The company's tax rate is 24.23%. Ignoring the IFRS requirement to record the debt and equity components of the bonds separately. what is the company's fully diluted earnings per share? $2.52 $2.59 $2.66 $2.73 $2.80