During2019, Shepherd paid dividends of $1.00 per common share and $2.50 per preferred share. The preferred shares are non-cumulative, and convertible into 20,000 common shares. The 9% convertible bonds are convertible into 50,000 common shares. Net income for calendar2019was $500,000. Assume the income tax rate is 30%.Whatisthe diluted earnings per share for2019?

9% convertible bonds $2,000,000

Convertible preferred shares outstanding 10,000 shares

Common shares outstanding 100,000 shares