Edwards Corporation Has Three Potentially Dilutive Securities What Is the Correct Order of Entry into the EPS

question 9

Multiple Choice

Edwards Corporation has three potentially dilutive securities. Computation of the antidilution sequencing recorded the following: $$\begin{array} { | l | c | c | } \hline { \text { Security } } & \text { Increase in Income } & \text { Increase in Common Shares } \\\hline \text { Convertible Preferred Stock } & \$ 50,000 & 16,000 \\\hline \text { Stock Warrants } & \$ 0 & 7,000 \\\hline \text { Convertible Bonds } & \$ 20,000 & 6,000 \\\hline\end{array}$$
What is the correct order of entry into the EPS computation? (Round any calculations to the nearest cent.)

• A) convertible preferred stock, stock warrants, convertible bonds
• B) stock warrants, convertible preferred stock, convertible bonds
• C) convertible bonds, convertible preferred stock, stock warrants
• D) stock warrants, convertible bonds, convertible preferred stock

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