O b. 50,000 O c. 20,000 O d. 40,000 CH16 Zion Co. reported net income of $500,000 and preferred stock dividend of $10,000 in 2017; and had 200,000 shares of common stock outstanding throughout the year. Also outstanding all year were 45,000 options to purchase common stock at $10 per share. The average market price of the stock during the year was $15. Compute diluted earnings per share, rounded to the nearest penny. Select one: O a. 2.28 O b. 2.45 O c. 2.30 O d. 2.33 CH16 Companies recognize a gain or loss when stockholders exercise convertible preferred stock (i.e., conversion). Select one