Information concerning the capital structure of the Petrock

Corporation is
Information concerning the capital structure of the Petrock Corporation is

Information concerning the capital structure of the Petrock Corporation is as follows:

December 31,
_______________________________________2016 2017
Common stock...................................90,000 shares................90,000 shares
Convertible preferred stock....................10,000 shares................10,000 shares
8%, $1,000 par, convertible bonds...............$1,000,000...................$1,000,000
During 2017, Petrock paid dividends of $1 per share on its common stock and $2.40 per share
on its preferred stock. The preferred stock is convertible into 20,000 shares of common stock.
The 8% convertible bonds are convertible into 30,000 shares of common stock. The net income
for the year ending December 31, 2017, was $285,000, and the company's income tax rate was
40%.
Required:
1. What was basic EPS for 2017, rounded to the nearest penny?
2. What was diluted EPS for 2017, rounded to the nearest penny?

Information concerning the capital structure of the Petrock Corporation is

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