Brief Exercise 16-14

Sarasota Corporation reported net income of $256,960 in 2017 and had 47,400 shares of common stock outstanding throughout the year. Also outstanding all year were 5,500 shares of cumulative preferred stock, each convertible into 2 shares of common. The preferred stock pays an annual dividend of $5 per share. Sarasotas tax rate is 50%. Compute Sarasotas 2017 diluted earnings per share. (Round answer to 2 decimal places, e.g. 3.55.)

Diluted earnings per share

$