QUESTION 17

1. Gator, Inc. had net income of $1,650,000 and 500,000 common shares outstanding in 2018. The company paid $30,000 in common stock dividends and $75,000 in preferred stock dividends during the year. The company has 20,000 shares of convertible preferred stock, and each share of preferred stock can be converted into 5 shares of common stock. The company's tax rate is 30%. What was the company's diluted earnings per share (EPS) in 2018?

   	a.	$3.30
   	b.	$3.15
   	c.	$2.90
   	d.	$2.75
   	e.	$2.625