Question: Exercise 16-25 x Your answer is incorrect. Try again. On January 1, 2017, Novak Company issued 10-year, $1,870,000 face value, 6% bonds, at par. Each

Exercise 16-25 x Your answer is incorrect. Try again. On January

Exercise 16-25 x Your answer is incorrect. Try again. On January 1, 2017, Novak Company issued 10-year, $1,870,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 15 shares of Novak common stock. Novak's net income in 2017 was $321,000, and its tax rate was 40%. The company had 104,000 shares of common stock outstanding throughout 2017. None of the bonds were converted in 2017. (a) Compute diluted earnings per share for 2017. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share 321,000 (b) Compute diluted earnings per share for 2017, assuming the same facts as above, except that $1,040,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Novak common stock. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share 104,000 Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT

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