4. Facts .500 shares of common stock outstanding the entire year . 500 shares of preferred stock outstanding the entire year. Preferred stock had a $6 dividend Each preferred share could be converted into 1.2 shares of common stock .500 S10 stock options . The current market price is $12.50 S50,000 of eight percent bonds that could be converted into 500 shares Net income was $9,000 Calculate earnings per share and diluted earnings per share