Riverbed Corporation had a net income for the current year ending December 31, 2021 of $1,212,500. Throughout 2021 the following items were outstanding:

		410,000 common shares
		18,000 Class A $3 cumulative preferred shares that were convertible to common shares at a rate of 1:1
		49,000 Class B $4 non-cumulative preferred shares that were convertible at a rate of one common share for every two preferred shares.
		$512,000, 8% bonds that were convertible to 16,000 common shares
		$294,000, 10% bonds convertible to 10,000 common shares

No dividends were declared or paid in 2021. Riverbeds tax rate is 25%.

Calculate the income effect of the dividends on Class A preferred shares.

Dividends on Class A preferred shares

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, e.g. 15.25.)

Basic earnings per share

Calculate the after-tax interest paid on the 8% bonds.

After-tax interest on 8% bonds converted

Determine an incremental per share effect for 8% bonds. (Round earnings per share to 2 decimal places, e.g. 15.25.)

Potentially dilutive security		Incremental Numerator Effect		Incremental Denominator Effect		EPS
8% Bonds		$				$

Calculate the after-tax interest paid on the 10% bonds.

After-tax interest on 10% bonds converted

$

Determine an incremental per share effect for 10% bonds. (Round earnings per share to 2 decimal places, e.g. 15.25.)

Potentially dilutive security		Incremental Numerator Effect		Incremental Denominator Effect		EPS
10% Bonds		$				$

Determine an incremental per share effect for Class A preferred shares. (Round earnings per share to 2 decimal places, e.g. 15.25.)

Potentially dilutive security		Incremental Numerator Effect		Incremental Denominator Effect		EPS
Class A preferred shares		$				$

Determine an incremental per share effect for Class B preferred shares. (Round earnings per share to 2 decimal places, e.g. 15.25.)

Potentially dilutive security		Incremental Numerator Effect		Incremental Denominator Effect		EPS
Class B Preferred shares		$				$

Rank the potentially dilutive securities from most dilutive to least dilutive.

Class B preferred shares		Rank 1Rank 2Rank 3Rank 4Anti-dilutive
8% bonds		Rank 1Rank 2Rank 3Rank 4Anti-dilutive
10% bonds		Rank 1Rank 2Rank 3Rank 4Anti-dilutive
Class A preferred shares		Rank 1Rank 2Rank 3Rank 4Anti-dilutive

Calculate diluted earnings per share. (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		$				$
Class A preferred sharesClass B preferred shares8% bonds10% bonds
Sub Total
Class A preferred sharesClass B preferred shares8% bonds10% bonds
Sub Total
Class A preferred sharesClass B preferred shares8% bonds10% bonds
		$				$

Diluted EPS