Milliken Corporation reported net income of $700,000 in 2014 and had 115,000 common shares outstanding throughout the

Question:

Milliken Corporation reported net income of $700,000 in 2014 and had 115,000 common shares outstanding throughout the year. Also outstanding all year were 9,500 of cumulative preferred shares, with each being convertible into two common shares. The preferred shares pay an annual dividend of $5 per share. Milliken's tax rate is 30%. Calculate Milliken's 2014 diluted earnings per share?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...