Information Concerning the Capital Structure of Shelmardine Corporation Follows

question 24

Multiple Choice

Information concerning the capital structure of Shelmardine Corporation follows During 2017, Shelmardine paid dividends of $1.00 per common share and $2.50 per preferred share.The preferred shares are non-cumulative, and convertible into 20,000 common shares.The 9% convertible bonds are convertible into 50,000 common shares.Net income for calendar 2017 was $500,000.Assume the income tax rate is 30%.
What is the diluted earnings per share for 2017?

• A)$4.00
• B)$3.68
• C)$3.54
• D)$2.94

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