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okay in this problem were doing something a little bit more advanced were getting into convertible debt when it comes to earnings per share dont be scared theres going to be multiple points in this problem where youre going to be like oh no oh no please dont say this no oh its going to be so hard uh uh your brains gonna want to turn off dont do that thats the way you make a difference all right so dont turn your brain off in this problem okay uh lets get started assume the company has the following net income of 750 000 an average of 690 000 shares of common stock outstanding and they also have 50 000 of 6 thats the interest rate 6 of convertible bonds outstanding that are convertible into a total of 10 000 shares no other potentially diluted securities okay and then an effective tax rate of uh is 30 okay so what do we know for basic earnings per share that we have we have our net income right and if you recall our net income whats our net income net of its revenue minus