Find Diluted earnings per share assuming Fitzgerald had common, preferred, convertible debt, and stock options and that the preferred is convertible at a 1:1 exchange rate.

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(LO 5 P16-5 EPS with Complex Capital Structure) (LO 5) Amy Dyken, controller at Fitzgerald Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Fitzgerald's financial statements. Below is selected financial Information for the fiscal year ended June 30, 2017. FITZGERALD PHARMACEUTICAL INDUSTRIES SELECTED BALANCE SHEET INFORMATION 30-Jun-17 Long-term debt Notes payable, 10% 8% convertible bonds payable 10% bonds payable Total long-term debt $1,000,000 5,000,000 6,000,000 $12,000,000 Shareholders' equity Preferred stock, 6 % cumulative, $50 par value, 100,000 shares authorized, 25,000 shares issued and $ 1,250,000 outstanding Common stock, $1 par, 10,000,000 shares authorized, 1,000,000 shares issued and outstanding 1,000,000 4,000,000 Additional paid-in capital 6,000,000 $12,250,000 Retained earnings Total shareholders' equity The following transactions have also occurred at Fitzgerald. 1.0ptions were granted on July 1, 2016, to purchase 200,000 shares at $15 per share. Although price per common share during fiscal year 2017 was $20 per share. no options were exercised during fiscal year 2017, the average 2.Each bond was issued at face value. The 8 % convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2016. 3.The preferred stock was issued in 2016 4.There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2017 5.The 1,000,000 shares of common stock were outstanding for the entire 2017 fiscal year. 6.Net income for fiscal year 2017 was $1,500,000, and the average income tax rate is 40 % (LO 5 P16-5 EPS with Complex Capital Structure) (LO 5) Amy Dyken, controller at Fitzgerald Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Fitzgerald's financial statements. Below is selected financial Information for the fiscal year ended June 30, 2017. FITZGERALD PHARMACEUTICAL INDUSTRIES SELECTED BALANCE SHEET INFORMATION 30-Jun-17 Long-term debt Notes payable, 10% 8% convertible bonds payable 10% bonds payable Total long-term debt $1,000,000 5,000,000 6,000,000 $12,000,000 Shareholders' equity Preferred stock, 6 % cumulative, $50 par value, 100,000 shares authorized, 25,000 shares issued and $ 1,250,000 outstanding Common stock, $1 par, 10,000,000 shares authorized, 1,000,000 shares issued and outstanding 1,000,000 4,000,000 Additional paid-in capital 6,000,000 $12,250,000 Retained earnings Total shareholders' equity The following transactions have also occurred at Fitzgerald. 1.0ptions were granted on July 1, 2016, to purchase 200,000 shares at $15 per share. Although price per common share during fiscal year 2017 was $20 per share. no options were exercised during fiscal year 2017, the average 2.Each bond was issued at face value. The 8 % convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2016. 3.The preferred stock was issued in 2016 4.There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2017 5.The 1,000,000 shares of common stock were outstanding for the entire 2017 fiscal year. 6.Net income for fiscal year 2017 was $1,500,000, and the average income tax rate is 40 %