Ray Corporation had 100,000 ordinary shares and 10000 shares of 8% $100 par convertible preference shares outstanding during the year Net income for the year was $400000 and dividends were paid to both ordinary and preference shareholders Rays effective tax rate is 20% Each preference share is convertible in to 5ordinary shares Compute basic and diluted EPS (rounded to the nearest cent).

Answer rating: 100% (QA)

Solution Basic EPS 320 Diluted EPS 267 Explanation Basic EPS ... View the full answer