Whispering Inc. had $502,000$ common shares outstanding for the entire fiscal year ended August $31,2023.$ Whispering also had

$105,000$$$3$ cumulative, no$-$par value preferred shares outstanding for the full year. Options were written at the start of the fiscal year

to purchase $32,000$ common shares at $$16$ per share. The average market price of Whispering's common shares during the year ended

August $31,2023$ was $$25$ per share. The options expire in $2032,$ and none were actually exercised during the current year. Also

outstanding for the entire year was a $7\%$ bond with a face value of $$4,600,000,$ convertible to $115,000$ common shares. Whispering

Inc.$\text{'}$s net income for the year was $$2,724,600,$ and the income tax rate for the fiscal year was $40\%.$

Calculate an incremental per share effect for the $7\%$ bonds. $($Round earnings per share to $3$ decimal places, e$.$g$.15\mathrm{.}25.)$

Potentially dilutive security

$7\%$ Bonds

Incremental

Numerator Effect

Numerator Effect

$

eTextbook and Media

Calculate the proceeds from assumed exercise of $32,000$ options.

Proceeds from exercise of options

eTextbook and Media

Calculate the incremental shares outstanding upon the exercise of options.

Incremental shares oustanding upon the exercise of options