The following information is used in answering questions 14-20. Dr. Pepper Co. has gathered the following information to be used in developing its Earnings Per Share presentation for its annual financial statements dated December 31, YR09. Net Income for the year is $6,000 and the income tax rate is 40%. Other relevant information for the YR09 year includes: Common Stock Convertible Bonds: Options: Preferred Stock: Market Prices of Securities: $1 par value common stock; 2,000 shares authorized; 1,000 shares issued and outstanding at 12-31-YR09. The company began the YR09 year with 400 shares issued and outstanding. On 4-1-YR09 an additional 100 shares were issued for cash. Also, on 7-1-YR09, the company declared a 2 for 1 stock split. $2,000 of 4% convertible bonds are outstanding at 12-31-YR09. The 10 year bonds are dated 7-1-YR09, were issued at 102 on 10-1-YR09, and pay interest each year on July 1. Beginning on 12-1-YR12 each $1,000 bond is convertible into common stock according to the following schedule. Year of conversion YR12 to YR14 YR15 and beyond Conversion rate 5 shares for each bond 10 shares for each bond As of 12-31-YR09 none of these bonds have been converted to common stock. Also, for the year ended 12-31-YR09 the company recorded $5 of bond premium amortization (straight-line method) related to these bonds. A total of 60 (Series A) stock options with an exercise price of $10 were outstanding at 12-31-YR09. Upor payment of $10 each option is convertible into one share of common stock. The options were originally iss on 3-1-YR09 and are exercisable between 4-1-YR12 and 12-31-2018. Note: As of 12-31-YR09 none of these options have been converted to common stock. $100 par value, 4% cumulative preferred stock; 1,000 shares authorized; 600 shares issued and 500 share outstanding at 12-31-YR09. This issue of preferred stock is not convertible into common stock. This preferred stock was issued dur year ended 12-31-YR05. Dividends were last declared and paid for the year ended 12-31-YR07. Divid both YR08 and YR09 have not been declared or paid. During YR09 the common stock price averaged $12, and ended at $15 per share on 12-31-YR09. Also, during YR09 the market price of the options averaged $4, and ended at $6 per option on 12-31-YR09.