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In 2 0 X 4 , Wilson Company has net income of $ 5 0 , 0 0 0 and the weighted average common shares

In 20X4, Wilson Company has net income of $50,000 and the weighted average common shares outstanding is 15,000. Additionally, the company has cumulative convertible preferred stock and 4,000 options, where each option allows the holder to purchase one share of stock for $16 per share. The preferred stock pays an annual dividend of $2,000 and can be converted to 2,500 shares of common stock. The company's average share price during the year was $12 and its tax rate is 25%. Compute diluted EPS for 20X4.
A.) $2.86
B.) $2.70
C.) $3.20
D.) $2.68

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