QUESTION 4: EPS Presentations Schedule A contains data referable to A Ltd's 2012 year. Prepare the Basic and Diluted EPS presentations. Schedule A: A Ltd.'s Capital Structure and R/E As At December 31, 2010 $20 million 6-year convertible debentures issued at par; interest at 7% per annum payable annually not in advance. Each $1,000 debenture convertible into 40 common shares 20,000,000 Series T Preferred, no par, non-participating, 7% cumulative; 400,000 shares issued and outstanding. Each share is convertible into one common share. 1,200,000 Common 3,000,000 issued and outstanding. 18,000,000 300,000 stock warrants entitling warrant holders to purchase 4 common shares for each warrant held @ $5 per share; warrants exercisable any time prior to expiration date January 25, 2015. 600,000 Retained Earnings 17,785,000 GAAP Pre-tax net income 9,500,000 Average tax rate: 30%; The average common share price in 2012 was $10. CAPITAL RELATED TRANSACTIONS FOR 2012 Date SHARES TRANSACTION Apr, 30/11 Common Issued 200,000 shares @ $5.50 per share June 15/11 All Declared dividend of $1 million to shareholders of record Midnight, June 30, 2012 (no other dividend declared in year) June 30/11 Warrants 100,000 warrants exercised Jul. 31/11 Series T 100,000 shares converted Sep. 1/11 Common Shares split 3 for 1 Oct. 31/11 Common Retired 100,000 shares @ $7 per share A Ltd. has an agreement to issue an additional 2,000,000 common shares if the share price exceeds $10 by December 31, 2012. The share price at December 31, 2012 is $12