QUESTION 10 On 1/1/2016, Illini had 5,000 shares of $1 par outstanding common stock, 10,000 shares of $1 par 25% cumulative convertible preferred stock, and $1,000,000 convertible bonds. The interest expense of the bonds was $10,000. The 2016 net income (after interest and tax) was $40,000. Tax rate was 20%. The bonds were convertible into 4,000 shares of common stock, and the convertible preferred stock was convertible into 400 shares of common stock. What would be the diluted earnings per share? A. $4.84. B. $7.5. C. $5.11. D. $5.06.