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$3.64 is the correct answer, but I am very confused how to solve. Could someone please help? Thank you. Jostens Co. had 200,000 shares of
$3.64 is the correct answer, but I am very confused how to solve. Could someone please help? Thank you.
Jostens Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000 of 10% bonds outstanding during 2017. The preferred stock is convertible into 20,000 shares of common stock. During 2017, Jostens paid dividends of $1.20 per share on its common stock and $2.50 per share on its preferred stock. Each $1,000 bond is convertible into 10 shares of common stock. The net income for the year ended December 31, 2017 was $800,000. Assume the income tax rate was 30%. Diluted earnings per share for 2017 (rounded to the nearest penny) are: Select one: a. $3.64 O b. $3.35 O c. $2.94 O d. $3.28 O e. $3.22 Clear my choiceStep by Step Solution
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