Question 1 of 15 -/1 Blue Inc. had net income for the current year ending December 31, 2020 of $1.218.340. During the entire year, there were 509.000 common shares outstanding. The company had two classes of preferred shares outstanding the Class A preferred shares were $2.48 cumulative shares of which 11,000 were outstanding, and were convertible to common shares at a rate of 1:1. There were 110,000 $5.48 Class B non-cumulative preferred shares outstanding that were also convertible at a rate of 1:1. Blue had outstanding a $1,000,000,8% bond issued in 2009 that was convertible to 21,000 common shares. The company also had outstanding a $1,000,000,7% bond issued in 2010 that was convertible to 26,000 common shares. No dividends were declared on paid this year. Blue's tax rate is 39% Calculate the income effect of the dividends on Class A preferred shares. $ Dividends on Class A preferred shares eTextbook and Media Calculate the income effect of the dividends on Class B preferred shares. $ Dividends on Class B preferred shares Calculate basic earnings per share. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately.) (Round answer to 2 decimal places, eg. 15.25.) Basic earnings per share $ e Textbook and Media Calculate the after-tax interest paid on the 2009 bonds. $ $ After-tax interest on 2009 bonds converted e Textbook and Media Determine an incremental per share effect for 2009 bonds. (Round earnings per share to 3 decimal places, eg, 15.257.) Potentially dilutive security Incremental Numerator Effect Incremental Denominator Effect EPS 2009 Bonds $ e Textbook and Media Calculate the after-tax interest paid on the 2010 bonds. After-tax interest on 2010 bonds converted e Textbook and Media Determine an incremental per share effect for 2010 bonds./Round earnings per share to 3 decimal places, es, 15.257) Potentially dilutive security Incremental Numerator Effect Incremental Denominator Effect EPS 8% Bonds $ e Textbook and Media Determine an incremental per share effect for Class A preferred shares. (Round earnings per share to 2 decimal places, es 15.25.) Incremental Numerator Effect Incremental Denominator Effect EPS Potentially dilutive security Class A preferred shares $ Determine an incremental per share effect for Class B preferred shares. (Round earnings per share to 2 decimal places, eg. 15.25.) Incremental Numerator Effect Incremental Denominator Effect EPS Potentially dilutive security Class B preferred shares e Textbook and Media Rank the potentially dilutive securities from most dilutive to least dilutive. 2009 bonds 2010 bonds
