Question

Swifty Corporation had 197000 shares of common stock, 19200 shares of convertible preferred stock, and $1503000 of 4% convertible bonds outstanding during 2021. The preferred stock is convertible into 39900 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 $597000 and the income tax rate was 30%.Diluted earnings per share for 2021 is
a. $2.22
b. $2.38
c. $2.62
d. $2.18

Answer 1

Answer:

d. $2.18

Explanation:

The answer with detailed working is attached.

Download xlsx