What is the firm basic EPS

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Question - The 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

Required - What is the firm's basic EPS?

A. $1.25

B. $1.35

C. $1.50

D. $1.96

E. $2.08

Reference no: EM132714970

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