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Information concerning the capital structure of the Petrock Corporation is as follows: Common stock Convertible preferred stock 8%, $1,000 par, convertible bonds December 31 2016
Information concerning the capital structure of the Petrock Corporation is as follows: Common stock Convertible preferred stock 8%, $1,000 par, convertible bonds December 31 2016 2017 90,000 shares 90,000 shares 10,000 shares 10,000 shares $1,000,000 $1,000,000 During 2017, Petrock paid dividends of $1 per share on its common stock and $2.40 per share on its preferred stock. The preferred stock is convertible into 20,000 shares of common stock. The 8% convertible bonds are convertible into 30,000 shares of common stock. The net income for the year ending December 31, 2017, was $285,000, and the company's income tax rate was 40%. Required: 1. What was basic EPS for 2017? 2. What was diluted EPS for 2017? (For all requirements, round your answers for "Earnings per share" to 2 decimal places.) EPS for 2017 Basic Diluted Number of shares used in EPS computation Earnings used in EPS computation Earnings per share
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