Question

Swifty Corporation had 190000 shares of common stock, 20700 shares of convertible preferred stock, and $1540000 of 4% convertible bonds outstanding during 2021. The preferred stock is convertible into 40400 shares of common stock. During 2021, Swifty paid dividends of $1.00 per share on the common stock and $3 per share on the preferred stock. Each $1,000 bond is convertible into 30 shares of common stock. The net income for 2021 was $605000 and the income tax rate was 35%.
a. $2.22
b. $2.38
c. $2.62
d. $2.18

Answer 1

The answer to this is d