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Bonita Industries had 205000 shares of common stock, 19200 shares of convertible preferred stock, and $1600000 of 6% convertible bonds outstanding during 2021. The preferred
Bonita Industries had 205000 shares of common stock, 19200 shares of convertible preferred stock, and $1600000 of 6% convertible bonds outstanding during 2021. The preferred stock is convertible into 39400 shares of common stock. During 2021, Bonita paid dividends of $0.80 per share on the common stock and $3 per share on the preferred stock. Each $1,000 bond is convertible into 30 shares of common stock. The net income for 2021 was $599000 and the income tax rate was 35%. Diluted earnings per share for 2021 is (rounded to the nearest penny) O $2.02. O $2.06. O $2.45. O $2.26
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