During 2016, ABC Inc. reported net income of $115,600 and had 200,000 shares of common stock and1,000 shares of preferred stock outstanding for the entire year. ABC’s 10%, $100 par value preferred shares are each convertible into 40 shares of common stock. The tax rate is 40%. Compute basic and diluted EPS.

Answer rating: 100% (QA)

Amount of preferred dividend 100010010 10000 ABasic EPS Net income Preferred divide... View the full answer