Windsor Inc had net income for the current year ending December 31, 2020 of $1,069.530. During the entire year, there were 500,000 common shares outstanding. The company had two classes of preferred shares outstanding the Class A preferred shares were $2.23 cumulative shares of which 11,000 were outstanding, and were convertible to common shares at a rate of 1:1. There were 100,000 $5.23 Class B non-cumulative preferred shares outstanding that were also convertible at a rate of 1:1. Windsor had outstanding a $1,000,000,7% bond issued in 2009 that was convertible to 21.000 common shares. The company also had outstanding a $1,000,000,6% bond issued in 2010 that was convertible to 26,000 common shares. No dividends were declared or paid this year. Windsor's tax rate is 38%. Calculate the income effect of the dividends on Class A preferred shares. Dividends on Class A preferred shares $ 24530 Calculate the income effect of the dividends on Class B preferred shares. Dividends on Class B preferred shares 0 e Textbook and Media 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 $ 209 Calculate the after-tax interest paid on the 2009 bonds. $ 43400 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.) Incremental Numerator Effect Incremental Denominator Effect Potentially dilutive security EPS 2009 Bonds $ 43400 21000 $ 2.07 Calculate the after-tax interest paid on the 2010 bonds. 43400 After-tax interest on 2010 bonds converted eTextbook and Media Determine an incremental per share effect for 2010 bonds. (Round earnings per share to 3 decimal places, eg. 15.257.) Potentially dilutive security Incremental Numerator Effect Incremental Denominator Effect EPS 8% Bonds 37200 26000 $ 1.43 e Textbook and Media Determine an incremental per share effect for Class A preferred shares. (Round earnings per share to 2 decimal places, eg. 15.25.) Incremental Numerator Effect Incremental Denominator Effect EPS Potentially dilutive security $ Class A preferred shares $ e Textbook and Media 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 Rank the potentially dilutive securities from most dilutive to least dilutive. 2009 bonds 2010 bonds
