Earnings Per Share Example

$\backslash$table$[[$XYZ Company,Common Shares,Preferred Shares$],[$Authorized$,5,000,000,1,000,000],[$Issued and Outstanding,$800,000,400,000],[$Dividend per share per year,Not fixed,$$4],[$divill$,,($Convertible $1$ preferred to $5$ common shares$)],[$BASIC CASE,,$],[$Net Income,$$2,234,000,],[$Less: Cumulative preferred dividends,$-$$$1,600,000,],[$Net income available to common shareholders,$$634,000,],[$Number of shares outstanding,,$],[$Basic EPS,?,$],[,,],[$CONVERTION CASE,,$],[$Net Income,$$2,234,000,],[$Preferred shares,$400,000,],[$Conversion rate $($Common shares per preferred share$),5,],[$Preferred shares converted to common shares,$2,000,000,],[$Total number of shares outstanding,,$],[$Diluted EPS,,$]]$