Rudyard Corporation had 100,000 shares of common stock and 10,000 shares of 8%, $100 par...
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Accounting
Rudyard Corporation had 100,000 shares of common stock and 10,000 shares of 8%, $100 par convertible preferred stock outstanding during the year. Net income for the year was $400,000 and dividends were paid to both common and preferred shareholders. Rudyard's effective tax rate is 25%. Each share of preferred stock is convertible into five shares of common stock. What is Rudyard's diluted EPS (rounded)?
O $4.80. O $3.20. O $2.67. O $2.13.
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