14. At December 31, 2020, Sheffield Corp. had 1194000 shares of common stock outstanding. On October 1, 2021, an additional 397000 shares of common stock were issued. In addition, Sheffieldhad $13930000 of 6% convertible bonds outstanding at December 31, 2020, which are convertible into 796000 shares of common stock. No bonds were converted into common stock in 2021. The net income for the year ended December 31, 2021, was $5270000. Assuming the income tax rate was 30%, what should be the diluted earnings per share for the year ended December 31, 2021, rounded to the nearest penny?

$2.24

$4.06

$2.80

$2.91

11.

The intrinsic value of a stock option is the difference between the market price of the stock and the exercise price of the options at the grant date.

True

False