E$15\mathrm{.}22($LO $5)($EPS with Convertible Bonds, Various Situations$)$ In $2024,$ Chirac Enterprises issued, at par, $60$$$1,000,8\%$ bonds, each convertible into $100$ shares of common stock. Chirac

had revenues of $$17,500$ and expenses other than interest and taxes of $$8,400$ for $2025.($Assume that the tax rate is $20\%.)$ Throughout $2025,2,000$ shares of common stock were outstanding; none

of the bonds was converted or redeemed.

Instructions

a$.$ Compute diluted earnings per share for $2025.$

b$.$ Assume the same facts as those assumed for part $($a$),$ except that the $60$ bonds were issued on September $1,2025($rather than in $2024),$ and none have been converted or redeemed. Compute

diluted earnings per share for $2025.$

c$.$ Assume the same facts as assumed for part $($a$),$ except that $20$ of the $60$ bonds were actually converted on July $1,2025.$ Compute diluted earnings per share for $2025.$