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Windsor Corporation had a net income for the current year ending December 31, 2021 of $1,283,000. Throughout 2021 the following items were outstanding: . 413,000
Windsor Corporation had a net income for the current year ending December 31, 2021 of $1,283,000. Throughout 2021 the following items were outstanding: . 413,000 common shares . 21,000 Class A $3 cumulative preferred shares that were convertible to common shares at a rate of 1:1 49,500 Class B $4 non-cumulative preferred shares that were convertible at a rate of one common share for every two preferred shares. . $450,000, 8% bonds that were convertible to 15,000 common shares $285,000, 10% bonds convertible to 9,000 common shares No dividends were declared or paid in 2021. Windsor's tax rate is 25%. 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 63000 Basic $ 21000 3 $ Class B preferred shares 0 24750 Sub Total 27000 45750 8% bonds 21375 15000 Sub Total 1171625 60750 1.8 10% bonds 9000 69750 2.375 Diluted EPS 2.537
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