smartpants

1/1 5000
6/1 10% stock dividend *1.1 = 5500 * 12/12 = 5500
7/1 1000 repurchased -> -1000 * 6/12 = -500
total # of shares = 5000

without dilution effect: EPS = (15000 - 1000 * 100 * .1 )/5000 = 5000/5000 = 1$

with dilution: say all preferred is converted.
Numerator = 15000
denominator = 5000 + 1000*8 = 13000

EPS = 15/13 > 1$ (anti-dilutionary).

so 1$=Diluted EPS.

CP