Splish Inc. had net income for the current year ending December 31, 2020 of $1,147,280. 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 $2.48 cumulative shares of which 11,000 were outstanding, and were convertible to common shares at a rate of 1:1. There were 105,000 $5.48 Class B non-cumulative preferred shares outstanding that were also convertible at a rate of 1:1. Splish had outstanding a $1,000,000, 8% bond issued in 2009 that was convertible to 22,000 common shares. The company also had outstanding a $1,000,000, 6% bond issued in 2010 that was convertible to 25,000 common shares. No dividends were declared or paid this year. Splishs tax rate is 39%.

Calculate the after-tax interest paid on the 2010 bonds.

After-tax interest on 2010 bonds converted

$Enter your answer in accordance to the question statement

Determine an incremental per share effect for 2010 bonds. (Round earnings per share to 3 decimal places, e.g. 15.257.)

Potentially dilutive security		Incremental Numerator Effect		Incremental Denominator Effect		EPS
8% 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.

2009 bonds		Rank 1Rank 2Rank 3Rank 4Anti-dilutive
2010 bonds		Rank 1Rank 2Rank 3Rank 4Anti-dilutive
Class A preferred shares		Rank 1Rank 2Rank 3Rank 4Anti-dilutive
Class B 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		$				$
2009 bonds2010 bondsClass A preferred sharesClass B preferred shares
Sub Total
2009 bonds2010 bondsClass A preferred sharesClass B preferred shares
Sub Total
2009 bonds2010 bondsClass A preferred sharesClass B preferred shares
		$				$

Diluted EPS