Smythe, Inc What Is the Correct Order of Entry into the EPS

Smythe, Inc. has four potentially dilutive securities. Computation of the antidilution sequencing recorded the following: $$\begin{array} { | l | c | c | } \hline{ \text { Security } } & \text { Increase in Income } & \text { Increase in Common Shares } \\\hline \text { Convertible Preferred Stock } & \$ 40,000 & 10,000 \\\hline \text { Stock Warrants } & \$ 0 & 1,000 \\\hline \text { Stock Options } & \$ 0 & 14,000 \\\hline \text { Convertible Bonds } & \$ 17,000 & 5,000 \\\hline\end{array}$$
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, stock options
B) stock options, stock warrants, convertible bonds, convertible preferred stock
C) convertible bonds, convertible preferred stock, stock warrants
D) stock options, convertible bonds, convertible preferred stock, stock warrants

Correct Answer:

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