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Hanson Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1, 500,000 of 5% convertible bonds outstanding during 2018. The
Hanson Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1, 500,000 of 5% convertible bonds outstanding during 2018. The preferred stock is convertible into 40,000 shares of common stock. During 2015, Hanson paid dividends of $90 per share on the common stock and $3 per share on the preferred stock. Each $1,000 bond is convertible into 30shares of common stock. The net income for 2018 was $600,000 and the income rate was 30%. Diluted earnings per share for 2018 is (rounded to the nearest penny) $2.08. $2.12. $2.29 $2.50
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