Reference no: EM132610341

Question - Centurion, Inc. has four potentially dilutive securities. Net income for the year is $900,000 and the weighted average common shares outstanding is 600,000 shares. Computation of the antidilution sequencing recorded the following:

Security Increase in Income Increase in Common Shares

Convertible Preferred Stock $30,000 12,000

Stock Warrants $0 7,000

Stock Options $0 (8,000)

Convertible Bonds $95,000 80,000

Required - Show all computations to determine your final answer.

a) Write the basic equation for EPS and compute basic EPS.

b) Determine the order of entry into the dilutive EPS computation.

c) Compute final diluted EPS.