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Question: on january 1 2017 teal company issued 10year 1900000 face...

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On January 1, 2017, Teal company issued 10-year, $1,900,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 14 shares of Teal common stock. Teals net income in 2017 was $283,000, and its tax rate was 40%. The company had 99,000 shares of common stock outstanding throughout 2017. None of the bonds were converted in 2017 (a) Compute diluted earnings per share for 2017. (Round answer to 2 decimal places, e.g $2.55 Diluted earnings per share (b) Compute diluted earnings per share for 2017, assuming the same facts as above, except that $990,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Teal common stock. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share

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