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The Following Information/Schedule sets forth the Current Portion & Long-Term Portion of the Debt and the Shareholder's Equity of the Humza Mohammed Corporation as at

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The Following Information/Schedule sets forth the Current Portion & Long-Term Portion of the Debt and the Shareholder's Equity of the Humza Mohammed Corporation as at December 31st, 20X2. The President Steven J. Nguyen, has requested that you Assist the Controller Can Emir Sakarcan in Preparing Figures for the Required Earnings Per Share Calculations. Humza Mohammed Corporation Statement of Financial Position For the Year Ended December 31, 2020 Assets Current Liabilities: Notes Payable. $ 4,000,000 Current Portion of Long-Term Debt 10,000,000 Total Current Liabilities $ 14,000,000 Long Term Liabilities: 4.0% Convertible Debenture/Bonds $ 30,000,000 Other Long-Term Debt (Net of Current Portion) 20.000.000 Total Long-Term Liabilities....... 50.000.000 Total Liabilities $ 64,000,000 Shareholder's Equity: $4.00 Cumulative Convertible Preferred Shares, No Par Value; Authorized 2,000,000 Shares, Issued and Outstanding 1,200,000 Shares, Liquidating Preference; $30.00 Per Share, Aggregating $36,000,000 $ 24,000,000 Common Shares, No Par Value; Authorized 20,000,000 Shares; Issued and Outstanding 7,000,000 Shares, Including 500,000 Shares Held In Treasury 11,200,000 Retained Earnings. 76.500.000 Total $ 111,700,000 Less: Cost of the 500,000 Common Shares Held in Treasury (Acquired Prior to 20x2) 900.000) Total Shareholder's Equity $ 110.800.000 Total Liabilities & Shareholder's Equity 174.800.000 Additional Information: 1. The Other Long-term Debt and the related amounts due within one year are amounts due on an unsecured Promissory Note that require payments each year to maturity. The effective interest rate on these Debentures range from 6.0% to 7.0%. 2. The 4.0% Convertible Bond/Debenture were issued at their Face Value of $30,000,000 in 20X0. The Bond/Debenture is due in Twenty Years and until then are Convertible into Common Shares of the Mohammed Corporation at the Rate of Twenty-Five (25) for each $1,000 Bond Debentures. 3. The $4.00 Cumulative Convertible Preferred Shares were issued in 20X1. The shares had a Market Price/Value of $75.00 at the time of Issuance. On July 14, 20X2 and October 1st, 20X2 holders of the Preferred Shares Converted 80,000 and 20,000 Preferred Shares, respectively into Common Shares. Each Preferred Shares is convertible into 1.2 Common Shares. 4. On April 18, 20X2. The Humza Mohammed Corporation Company acquired the Assets and Business of Jasminka Milovanovic Industries by the Issuance of 600,000 of Humza Mohammed Corporation's Common Shares. 5. On October 1st, 20X0, the Corporation granted Options to its key Executives/Officers and a few Selected Employees to Purchase 120,000 of the Humza Mohammed Corporation Common Shares at an Option Price of $20.00. The Market Price on December 31st, 20X2 was $100.00 Per Share. The Executive Stock Options are not Exercisable until January 14, 20X4. 6. Dividends on the Preferred Shares have been paid through December 31, 20x2. The Dividends on the Preferred Shares are Paid Quarterly. The Dividends Paid on the Common Shares were $.50 per Share Each Quarter. 7. The Net Income for the Humza Mohammed Corporation for the Year Ended December 31, 20x2 was $27,800,000. There were No Gains or Losses from Discontinued Operations. The Provision for Income Taxes was Calculated at a Rate of 34.0%. The Annual Average Rate of Return (Pre-Tax) on Invested Capital was 10.0% Required: 1. What Type of Capital Structure is it? 2. What type of EPS is required? 3. Calculate the required EPS

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