Given:

1) Net Income $280,000.

2) Capital structure:
a. Convertible 6% bonds. Each of 300, $1000 bonds is convertible into 50 shares of common stock at the present date and for the next 10 years. $300,000

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. Average market price per share od common stock during the year $32
e. Warrants outstanding during the year
f. Warrants exercised during the year none