*Your answer is incorrect. On January 1, 2025, Vaughn Company issued 10-year, $1,880,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 14 shares of Vaughn common stock. Vaughn's net income in 2025 was $522.500, and its tax rate was 20%. The company had 110,000 shares of common stock outstanding throughout 2025. None of the bonds were converted in 2025. a.Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, es. 2.55.) Diluted earnings per share 0.75 b. Compute diluted earnings per share for 2025, assuming the same facts as above, except that $1,100,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Vaughn common stock. (Round answer to 2 decimal places, eg. 2.55) Diluted earnings per share 31.67 *Your answer is incorrect. On January 1, 2025, Vaughn Company issued 10-year, $1,880,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 14 shares of Vaughn common stock. Vaughn's net income in 2025 was $522.500, and its tax rate was 20%. The company had 110,000 shares of common stock outstanding throughout 2025. None of the bonds were converted in 2025. a.Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, es. 2.55.) Diluted earnings per share 0.75 b. Compute diluted earnings per share for 2025, assuming the same facts as above, except that $1,100,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Vaughn common stock. (Round answer to 2 decimal places, eg. 2.55) Diluted earnings per share 31.67 *Your answer is incorrect. On January 1, 2025, Vaughn Company issued 10-year, $1,880,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 14 shares of Vaughn common stock. Vaughn's net income in 2025 was $522.500, and its tax rate was 20%. The company had 110,000 shares of common stock outstanding throughout 2025. None of the bonds were converted in 2025. a.Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, es. 2.55.) Diluted earnings per share 0.75 b. Compute diluted earnings per share for 2025, assuming the same facts as above, except that $1,100,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Vaughn common stock. (Round answer to 2 decimal places, eg. 2.55) Diluted earnings per share 31.67