Questions I want help with:

1. Calculate the after-tax interest paid on the 4% bonds.

2. Determine an incremental per share effect for 4% bonds. (Round earnings per share to 2 decimal places, e.g. 15.25.)

3. Calculate the after-tax interest paid on the 6% bonds.

4. Determine an incremental per share effect for 6% bonds. (Round earnings per share to 2 decimal places, e.g. 15.25.)

An excerpt from the statement of financial position of Pharoah Limited follows: PHAROAH LIMITED Selected Statement of Financial Position Information At December 31, 2020 Long-term debt Notes payable, 10% $5.007.000 4% convertible bonds payable 1.990,000 6% convertible bonds payable 2.964.000 Total long-term debt $9.961.000 $2.703,500 Shareholders' equity $0.63 cumulative, no par value, convertible preferred shares (unlimited number of shares authorized, 540,700 shares issued and outstanding) Common shares, no par value (8.607.900 shares authorized 2.978.000 shares issued and outstanding) Contributed surplus Retained earnings Total shareholders' equity 27,394,000 197,300 7.339,500 $37,634.300 Notes and Assumptions December 31, 2020 1. 2. 3. Options were granted/written in 2019 that give the holder the right to purchase 106,500 common shares at $9 per share. The average market price of the company's common shares during 2020 was $15 per share. The options expire in 2028 and no options were exercised in 2020. The 4% bonds were issued in 2019 at face value. The 6% bonds were issued on June 1, 2020, at face value. Each bond has a face value of $1.000 and is convertible into 100 common shares. The convertible preferred shares were issued at the beginning of 2020. Each share of preferred is convertible into one common share. The average income tax rate is 25%. The common shares were outstanding during the entire year. Preferred dividends were not declared in 2020. Net income was $2,285,500 in 2020. No bonds or preferred shares were converted during 2020. 4. 5. 6. 7. 8. Calculate the income affect of the dividends on preferred shares. $ Dividends on praferred shares 340541 e Textbook and Media Calculats basic samnings per share for 2020. (Round answer to 2 decimal places eg. 15.25.) Basic EPS $ Determine an incremental per share affect for $0.63 preferred shares. {Round answer to 2 decimal places, eg. 15.25.) Incremental Numerator Effect Incremental Denominator Effect 11 EPS Potentially dilutive security $0.63 Preferred shares $ 340641 540700 $ e Textbook and Media Calculate the proceeds from assumed acercise of 106,500 options. $ Proceeds from exercise of options 958500 Calculate the incremental shares oustanding upon the exercise of options. 106500 The incremental shares oustanding upon the exercise of options $ After-tax interest on 49% bonds converted Potentially dilutive security 496 Bonds Incremental Numerator Effect Incremental Denominator Effect EPS $ $ w After-tax interest on 696 bonds converted Potentially dilutive security 66 Bonds Incremental Numerator Effect Incremental Denominator Effect EPS $ $