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Monsieur Company had 80,000 shares of common stock outstanding during 2020 and 2,000 shares of cumulative...

Monsieur Company had 80,000 shares of common stock outstanding during 2020 and 2,000 shares of cumulative 6%, $100 par preferred stock, each convertible into 5 shares of common stock with  $1 par value per share. The company’s tax rate is 25%. During 2020, Monsieur Company declared and paid $5,000 in preferred dividends and no common stock dividends. Monsieur Company reported net income of $318,000 in 2020.

Compute basic and diluted EPS for 2020.

               Basic EPS     Diluted EPS

  1.   $3.83             $3.40
  2.    $3.91            $3.53
  3.    $3.83            $3.53
  4.    $3.91            $3.48
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