Calculate dilute EPS. Mayfield Corporation has net income of 500,000 for the year and a weighted-average number

Calculate dilute EPS.

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Mayfield Corporation has net income of 500,000 for the year and a weighted-average number of ordinary shares outstanding during the period of 175,000 shares. The company has two convertible debenture bond issues outstanding. One is a 6 percent issue sold at 100 (total £1,000,000) in a prior year and convertible into 25,000 ordinary shares. Interest expense for the current year related to the liability component of this convertible bond is £62,000. The other is a 7 percent issue sold at 100 (total £1,000,000) on June 1 of the current year and convertible into 54,000 ordinary shares. Interest expense for the current year related to the liability component of this convertible bond is £100,000. The tax rate is 40 percent. Mayfield Corporation has net income of 500,000 for the year and a weighted-average number of ordinary shares outstanding during the period of 175,000 shares. The company has two convertible debenture bond issues outstanding. One is a 6 percent issue sold at 100 (total £1,000,000) in a prior year and convertible into 25,000 ordinary shares. Interest expense for the current year related to the liability component of this convertible bond is £62,000. The other is a 7 percent issue sold at 100 (total £1,000,000) on June 1 of the current year and convertible into 54,000 ordinary shares. Interest expense for the current year related to the liability component of this convertible bond is £100,000. The tax rate is 40 percent.

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