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During 2021, Angel Corporation had 1,000,000 shares of common stock and 60,000 shares of 10% preferred stock outstanding. The preferred stock does not have
During 2021, Angel Corporation had 1,000,000 shares of common stock and 60,000 shares of 10% preferred stock outstanding. The preferred stock does not have cumulative or convertible features. Angel declared and paid cash dividends of $430,000 and $215,000 to common and preferred shareholders, respectively, during 2021. On January 1, 2020, Angel issued $2,130,000 of convertible 6% bonds at face value. Each $1,000 bond is convertible into five common shares. Angel's net income for the year ended December 31, 2021, was $6.00 million. The income tax rate is 25%. What will Angel report as diluted earnings per share for 2021, rounded to the nearest cent? Multiple Choice $5.72. $5.94. None of these answer choices are correct. $6.03.
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