Multiple Choice Question 118 Vaughn Manufacturing had 204000 shares of common stock, 21000 shares of convertible preferred stock, and $603000 of 9% convertible bonds outstanding during 2018. The preferred stock is convertible into 39200 shares of common stock. During 2018, Vaughn paid dividends of $1 per share the common stock and $2 per share on the preferred stock. Each $1,000 bond is convertible into 45 shares of common stock. The net income for 2018 was $360000 and the income tax rate was 25%. Diluted earnings per share for 2018 is (rounded to the nearest penny) o $1.48. O $1.37. O $1.55. O $1.33