Current Attempt in Progress

During $2013,$ Blue Inc., a furniture store, issued two different series of bonds, details of which follow:

First issue: $,610$$$100,9\%$ bonds, at par, each convertible into $6$ common shares.

Second issue: $,250$$$100,7\%$ bonds, at par, each convertible into $2$ common shares.

For the year ended December $31,2023,$ the company had net income of $$76,860.$ Throughout $2023,3,000$ common shares were

outstanding; none of the bonds were converted or redeemed. The company's tax rate was $20\%.$

Calculate basic earnings per share. $($For simplicity, ignore the requirement to record the debt and equity portions of the

convertible bond separately$).($Round answer to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

Basic earnings per share $

eTextbook and Media

Calculate the after$-$tax interest paid on the $9\%$ bond.

Incremental per share $

eTextbook and Media

Calculate an incremental per share effect for the $9\%$ bonds. $($Round EPS to $3$ decimal places, e$.$g$.15\mathrm{.}254.)$

Potentially dilutive security

Incremental

Numerator Effect

Incremental

Denominator Effect

EPS