Basic and Diluted EPS The following information was taken from the books and records of Ludwick, Inc.: 1. Net Income $ 420,000 2. Capital Structure:

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Basic and Diluted EPS        
The following information was taken from the books and records of Ludwick, Inc.:
        
1.   Net Income                                              $ 420,000
        
2.   Capital Structure:        
a.   Convertible 6% bonds. Each of the 300, $1,000 bonds is convertible into 50 shares of common stock at the present date and for the next 10 years.                                420,000
        
b.   $ 10 par common stock, 200,000 shares issued and outstanding during the entire year.                                  2,000,000
        
c.   Stock warrants outstanding to buy 16,000 shares of common stock at $20 per share
        
3.   Other information:        
a.   Bonds converted during the year                                                   None
        
b.   Income Tax Rate                                                                             30%
        
c.   Convertible debt was outstanding the entire year        
d.   Avg Market Price per share of common stock during the year        $32
        
e.   Warrants were outstanding the entire year        
f.    Warrants exercised during the year                                               None
        
Compute Basic and Diluted Earnings Per Share. Use the following format:
    • 5 years ago
    Basic and Diluted EPS The following information was taken from the books and records of Ludwick, Inc.: 1. Net Income $ 420,000 2. Capital Structure:
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