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Question 4 --/10 View Policies Current Attempt in Progress Bramble Corporation had net income of $92,000 for the fiscal year ending December 31, 2021. The

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Question 4 --/10 View Policies Current Attempt in Progress Bramble Corporation had net income of $92,000 for the fiscal year ending December 31, 2021. The company pays 15% income tax. For fiscal 2021, the weighted average number of common shares was 23,000. Throughout fiscal 2021 Bramble had a $510,000, 5% bond that was convertible to 11,000 common shares. On September 1, 2021, the company sold another new $1,035,000, 8% bond that was convertible to 21,000 common shares. Calculate Bramble's basic earnings per share. (Round answer to 2 decimal places, e.g. 15.25.) Basic EPS $ 4.00 eTextbook and Media Calculate the after-tax interest paid on the 5% bonds. After-tax interest on 5% bonds $ 21675Determine an incremental per share effect for 5% bonds. (Round earnings per share to 3 decimal places, e.g. 15.257.) Incremental Incremental Potentially dilutive security Numerator Effect Denominator Effect EPS 5% Bonds $ 21675 11000 $ 1.971 eTextbook and Media Calculate the after-tax interest paid on the 8% bonds. (Round answer to 0 decimal places, e.g. 5,125.) After-tax interest on 8% bonds $ 23460 eTextbook and MediaDetermine an incremental per share effect for 8% bonds. (Round earnings per share to 3 decimal places, e.g. 15.257.) Incremental Incremental Potentially dilutive security Numerator Effect Denominator Effect EPS 8% Bonds 23460 21000 1.117 eTextbook and Media Rank the potentially dilutive securities from most dilutive to least dilutive. 5% bonds Rank 1 8% bonds Rank 2 eTextbook and MediaCalculate Bramble's diluted earnings per share. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately). (Round calculations of EPS to 3 decimal places, e.g. $3.545 and provide final answer to 2 decimal places, e.g. 15.25.) Numerator Denominator EPS Basic EPS $ 4.00 8% bonds + Sub Total $ 2.88 5% bonds + $ 0.91 Diluted EPS

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