If Al Salam Firm has preferred stocks with dividends of $4,000 and the common shares outstanding were 3,000. The company has a debt of convertible bonds that worth $7,000 at 7% interest, the debt is...

If Al Salam Firm has preferred stocks with dividends of $4,000 and the common shares outstanding were 3,000. The company has a debt of convertible bonds that worth $7,000 at 7% interest, the debt is convertible into 7,000 shares and the Tax Rate is 40%. The Net Income of Al Salam Firm is $16,800 in 2018.

Required:

• Calculate the Basic EPS and the Diluted EPS for Al Salam Firm for the year 2018.


• Compare the Basic EPS with the Diluted EPS.