Question
During 2021, Hansen Construction had 512,000 shares of common stock and 56,000 shares of 6% cumulative preferred stock outstanding. The preferred stock has a par
During 2021, Hansen Construction had 512,000 shares of common stock and 56,000 shares of 6% cumulative preferred stock outstanding. The preferred stock has a par value of $100 per share. Hansen did not declare or pay any dividends during 2021. Hansen's net income for the year ended December 31, 2021, was $3.7 million. The income tax rate is 25%. Hansen granted 22,000 stock options to its executives on January 1 of this year. Each option gives its holder the right to buy 20 shares of common stock at an exercise price of $41 per share. The options vest after one year. The market price of the common stock averaged $42 per share during 2021. What is Hansen's diluted earnings per share for 2021, rounded to the nearest cent?
Multiple Choice
$7.08.
$6.44.
$6.57.
Cannot determine from the given information.
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