Required: Using the data below, calculate the seven required items related to EPS and diluted EPS.

Tips: This spreadsheet contains macros which will provide realtime feedback on EACH cell in the shaded area. Your score on the

assignment will be calculated based upon the

$\%$

$$of the

$7$

$$cells that are completed correctly. Use cell referencing where you can and work

in order

$($

i

$.$

e

$.$

$$start with required #

$1$

$)$

$.$

The information below pertains to Hood Company for

$2$

$0$

$2$

$6$

$.$

Net income for the year

There were no changes during the year in the number of common shares, preferred shares, or convertible bonds outstanding. There is no

treasury stock. The company also has common stock options

$($

granted in a prior year

$)$

$$to purchase

$1$

$2$

$0$

$,$

$0$

$0$

$0$

$$shares of common stock at

$

$1$

$2$

$$per share.

Required

$-$

$$Calculate the following:

$1$

$$Preferred dividends paid

$2$

$$Basic earnings per share

$3$

$$Incremental shares issued for stock options

$4$

$$Incremental shares issued for convertible bonds

$5$

$$Interest savings for convertible bonds

$($

inclusive of tax effect

$)$

$6$

$$EPS effect of convertible, cumulative preferred stock

$($

numerator

$/$

denominator impact

$)$

$7$

$$Final diluted earnings per sharescore on the assignment will be calculated based upon the $\%$ of the $7$ cells that are completed correctly. Use cell

referencing where you can and work in order $($i$.$e$.$ start with required #$1).$

The information below pertains to Hood Company for $2026.$

Net income for the year

$6\%$ convertible bonds issued at par $($ $$1,000$ per bond$)$; each bond is convertible into $60$ shares of common stock

There were no changes during the year in the number of common shares, preferred shares, or convertible bonds

outstanding. There is no treasury stock. The company also has common stock options $($granted in a prior year$)$ to

purchase $120,000$ shares of common stock at $$12$ per share.

Required $-$ Calculate the following:

$1$ Preferred dividends paid

$2$ Basic earnings per share

$3$ Incremental shares issued for stock options

$4$ Incremental shares issued for convertible bonds

$5$ Interest savings for convertible bonds $($inclusive of tax effect$)$

$6$ EPS effect of convertible, cumulative preferred stock $($numerator$/$denominator impact$)$

$7$ Final diluted earnings per share

Record Answers Here:

show steps