USE THE FOLLOWING INFORMATION FOR THE NEXT QUESTION:

Net income after tax = $1,000,400

Preferred dividends declared = $225,000

Beginning of year outstanding common shares = 224,500

# of convertible preferred shares able to be converted to common shares

= 391,000

Preferred stock is outstanding at the beginning of the year.

Tax rate = 16%

Basic earnings per share = $3.45

02:

Compute weighted average common shares outstanding for

the diluted earnings per share calculation: