USE THE FOLLOWING INFORMATION FOR THE NEXT QUESTION:

Net income after tax = $800,000

Preferred dividends declared = $335,000

Beginning of year outstanding common shares = 107,633

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

= 322,900

Preferred stock is outstanding at the beginning of the year.

Tax rate = 16%

Basic earnings per share = $4.32

Question 3

FIND DILUTED EARNINGS PER SHARE