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Full Exam Name: Configuring HPE GreenLake Solutions Test
Vendor Name: HPE Support Servicess
Exam Code: HPE0-P26 Exam

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BWT, Inc. shows the following data in its financial statements at the end of the year. Assume all securities were outstanding at the beginning of the year:
6.125% convertible bond, convertible into 33 shares of common stock. Issue price $1,000, 100 bonds
6.25% convertible preferred stock, $100 par, 2,315 shares outstanding. Convertible into 3.3 shares of
common stock, Issue price $100
8% convertible preferred stock, $100 par, 2,572 shares outstanding. Convertible into 5 common
shares, Issue price $80
9,986 warrants are outstanding with an exercise price of $38. Each warrant is convertible into 1 share
of common.
Average market price of common is $52.00 per share.
Common shares outstanding at the beginning of the year were 40,045.
Net Income for the period was $200,000, while the tax rate was 40%.
What were the Basic EPS for the year?
A. 4.12
B. 3.97
C. 4.22
Answer: A
Basic EPS = (Net income - preferred dividends)/Wt Average shares of common = ($200,000
- $35,045)/40,045 = 164,955/40,405 = 4.12

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