Zambrano Company's net income for 2014 is $48,000. The only potentially dilutive securities outstanding were 1,000 options issued on October 1, 2014 each exercisable for one share at $9. None have been exercised, and 16,000 shares of common stock were outstanding during 2014. The average market price during the last 3 months of 2014 was $28. Compute diluted earnings per share using the Treasury Stock Method. Round to two decimal places. Holders of fully or 100% participating preferred stock share ratably with the common stockholders in any profit distributions beyond the prescribed rate. True False A company should allocate the proceeds from the sale of debt with detachable stock warrants between the two securities based on their relative market values. True False