The Shirley Company had net income for 2xx9 of $300,000.
Beginning balance in $100 par, 8% cumulative preferred stock is $1,000,000. No dividends are in arrears. $1,000,000 in 6% convertible bonds are outstanding during the year. Each $1,000 bond is convertible into 2 shares of common stock.
Beginning balance in retained earnings is $400,000
Beginning of the year outstanding common stock shares 100,000
Par value is $10
Issued additional shares common stock March 1st 10,000
Received $12 per share
Purchased shares of treasury stock on September 1 5,000
Issued 2 for 1 stock split on October 17th
Required: What is diluted earnings per share for the year?