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

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

Correct Answer:

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