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Unformatted text preview: Basic EPS=$1.8 ) Interests/Dividends Saved Number of Shares Increased Incremental EPS Anti-dilutive? 10% Bond issued in a prior year Anti-dilutive 6% Bond issued on April 1 Dilutive $3 Preferred Shares issued on April 1 Dilutive Step 2: Re-calculate Income available to common shareholders 1 Handout #5 for Bus321-Intermediate Accounting II Professor: Yasheng Chen Step 3: Re-calculate weighted average number of shares Step 4: Calculate Dilutive EPS 4. Treasure stock method i. When will written call option become dilutive? ii. Assumption: a. b. 5. Reverse Treasure stock method i. When will written put option become dilutive? ii. Assumption: a. b. 2...
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