What is the firm basic eps

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Reference no: EM132663808

Firm has the following as part of its capital structure:

500,000 common stock shares outstanding
$250,000 worth of notes that are convertible to 100,000 common stock shares
Net income of $750,000
Dividends paid on common stock were $500,000
Dividends paid on preferred stock were $75,000

Problem 1: What is the firm's basic EPS?

A.$1.25

B.$1.35

C.$1.50

D.$1.96

E.$2.08

Reference no: EM132663808

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