During 2016, Piper paid dividends of $1.20 per ordinary share and $3.00 per preference share. The preference shares are convertible into 30,000 ordinary shares. The 9% convertible bonds are convertible into 75,000 ordinary shares. The net income for the year ended December 31, 2016, was $600,000. Assume that the income tax rate was 30%.
What should be the basic earnings per share for the year ended December 31, 2016?
A $2.66
B $2.92
C $3.70
D $4.00
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