Kansas Instruments reported $7,000,000 in net income for the current year.The company had $7,000,000 of 9% cumulative,non-convertible preferred stock outstanding all year,and issued,$5,000,000 of 7% convertible bonds issued on May 1.Each bond is convertible into 40 shares of common stock.Common shares outstanding all year were 2,000,000.Compute both basic and diluted EPS when the tax rate is 40%.
Instructions: Write the EPS formula.Show all computations used in your solution.

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The Answer of Kansas Instruments reported $7,000,000 in net income for the current year.The company had $7,000,000 of 9% cumulative,non-convertible preferred stock outstanding all year,and issued,$5,000,000 of 7% convertible bonds issued on May 1.Each bond is convertible into 40 shares of common stock.Common shares outstanding all year were 2,000,000.Compute both basic and diluted EPS when the tax rate is 40%.
Instructions: Write the EPS formula.Show all computations used in your solution.

Kansas Instruments Reported $7,000,000 in Net Income for the Current