Required information On January 1 of the current year, a company had the following securities in its capital structure: Common stock: 500,000 shares authorized; 150,000 shares issued and outstanding Bonds: $600,000 of convertible 13.0% bonds previously issued at face value. Each $1,000 bond is convertible into 35 common shares. Additional information: .Net income for the year was $500,000. The income tax rate was 25%. The company declared and paid cash dividends of $140,000 to common shareholders during the year. Use the information above to answer the questions below. What is the incremental effect of conversion of the bonds? (Click to select) $3.71 $0.36 $0.93 $2.79 $0.52