Jar Inc, Begins 2014 with 10,000 SH of common stock outstanding. They also have 1,000 SH of $100 par value, 10% cumulative preferred. Each share of preferred stock is convertible for 2 shares of common stock. Net income was $600,000. Please calculate basic and diluted EPS for 2014. Does convertible preferred stock increase EPS?

Answer rating: 100% (QA)

Basic EPS earning available to commonstockholder number of COMMON S... View the full answer