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Your corporation has 40,000 shares of common stock and 10,000 shares of cumulative preferred stock that is convertible into 2 shares of common stock. Both

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Your corporation has 40,000 shares of common stock and 10,000 shares of cumulative preferred stock that is convertible into 2 shares of common stock. Both issues were outstanding the entire year. The preferred stock pays an annual dividend of $5 per share. Net income for the year was $510,000. The tax rate was 20%. Compute basic and diluted Earnings Per Share

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