Parent Sub

Internally generated income $$940,000$ $$420,000$

Weighted Average Common Shares $500,000200,000$

Preferred Shares Outstanding $9,000($$$100$ par, $6\%)10,000($$$50$ par, $6\%)$

Convertible Bonds Payable $$960,000$ $$800,000$

Warrants to acquire Parent common stock $60,000$

$1)$ The Parent owns $80\%$ of the Sub

$2)$ None of the Sub$$s Preferred Shares are held by the Parent, none of the Parent$$s Preferred Shares are owned by the Sub

$3)$ The Parent$$s preferred stock is convertible into $27,000$ shares of common stock

$4)$ The Sub$$s preferred stock is convertible into $17,00$ shares of common stock

$5)$ The Parent$$s convertible Bonds Payable pay an interest rate of $5\%$ and are convertible into a total of $20,000$ shares of common stock. None of the Sub$$s Bonds are held by the Parent.

$6)$ The Sub$$s convertible Bonds Payable pay an interest rate of $5\%$ and are convertible into a total of $16,500$ shares of common stock. None of the Parent$$s Bonds are held by the Sub.

$7)$ Tax rate for both companies is $30\%$

$8)$ Each warrant entitles the holder to purchase one share of the Parent$$s common stock. The warrants to acquire Parent$$s stock were issued January $1$st of this year, Exercise price is $$70$; the stock prices at the end of each quarter were $$72(1$Q$),$ $$74(2$Q$),$ $$68(3$Q$)$ and $$72(4$Q$).$

Required: SHOW ALL CALCULATIONS $!!!!!!!$ Carry all per share calculations out to six decimal places and then round all calculations to the nearest $$\mathrm{.}01.$ For warrants, carry out your initial calculation out to four decimal places and then round to the nearest share

$1)$ Calculate Basic EPS for the Sub $$ circle all of your answers

$2)$ Calculate Diluted EPS for the Sub

a$)$ Convertible Preferred Stock only

b$)$ Convertible Bonds only

c$)$ Both Convertible Preferred Stock and Convertible Bonds for Diluted EPS for Sub $($show all of your calculations and circle your answer$)$

$3)$ Calculate Basic Consolidated EPS

$4)$ Calculate Diluted Consolidated EPS

a$)$ Convertible Preferred Stock only

b$)$ Convertible Bonds only

c$)$ Both Convertible Preferred Stock and Convertible Bonds

d$)$ Warrants

Your final, final, final answer here for Consolidated, Diluted EPS