Use the Following Information for Questions 124 and 125

question 79

Multiple Choice

Use the following information for questions 124 and 125.
Information concerning the capital structure of Piper Corporation is as follows: During 2015, Piper paid dividends of $0.60 per share on its common stock and $1.50 per share on its preferred stock. The preferred stock is convertible into 30,000 shares of common stock. The 6% convertible bonds are convertible into 75,000 shares of common stock. The net income for the year ended December 31, 2015, was $300,000. Assume that the income tax rate was 30%.
-What should be the diluted earnings per share for the year ended December 31, 2015, rounded to the nearest penny?

• A) $1.74
• B) $1.57
• C) $1.33
• D) $1.78

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