Which of the securities would be dilutive

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Problem 1: Fox Co. has basic earnings per share of $ .96. If the tax rate is 35%, which of the following securities would be dilutive?

Group of answer choices

Option 1: 4%, $100 par cumulative convertible preferred stock, issued at par, with each preferred share convertible into 5 shares of common stock.

Option 2: Convertible 6% bonds issued at par, with each $1,000 bond, convertible into 40 shares of common stock.

Option 3: Stock warrants with a $23 exercise price, convertible into 1,000 common shares with an average market price of $22.

Option 4: Convertible 9% bonds, issued at par, with each $500 bond, convertible into 25 shares of common stock

Reference no: EM132955510

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