Use the Following Information for Questions 117 and 118

question 137

Multiple Choice

Use the following information for questions 117 and 118.
Lerner Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $500,000 of 10% convertible bonds outstanding during 2015. The preferred stock is convertible into 40,000 shares of common stock. During 2015, Lerner paid dividends of $.45 per share on the common stock and $1.50 per share on the preferred stock. Each $1,000 bond is convertible into 45 shares of common stock. The net income for 2015 was $300,000 and the income tax rate was 30%.
-Diluted earnings per share for 2015 is (rounded to the nearest penny)

• A) $1.14.
• B) $1.16.
• C) $1.28.
• D) $1.33.

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Definitions:

Leading

The process of arousing enthusiasm and inspiring efforts to achieve goals.

Controlling

In management, it refers to the process of monitoring performance, comparing it with goals, and taking corrective action as needed.

Communication

The process of exchanging information, ideas, thoughts, and messages through speech, writing, signals, or behavior.

Conflict Resolution

The removal of the substantive and emotional reasons for a conflict.