Question
DiCenta Corporation reported net income of $270,000in 2014 and had50,000shares of common stock outstanding throughout the year. Also outstanding all year were5,000shares of cumulative preferred
DiCenta Corporation reported net income of $270,000in 2014 and had50,000shares of common stock outstanding throughout the year. Also outstanding all year were5,000shares of cumulative preferred stock, each convertible into 2 shares of common. The preferred stock pays an annual dividend of $5per share. DiCentas tax rate is40%.
Compute DiCentas 2014 diluted earnings per share.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
