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Business, 05.05.2020 08:24 KadaLearns

During 2021, A Corporation had 900,000 shares of common stock and 50,000 shares of 6% preferred stock outstanding. The preferred stock does not have cumulative or convertible features. A Corp. declared and paid cash dividends of $300,000 and $150,000 to common and preferred shareholders, respectively, during 2021. On January 1, 2020, A Corp. issued $2,000,000 of convertible 5% bonds at face value. Each $1,000 bond is convertible into five common shares. A's net income for the year ended December 31, 2021, was $6 million. The income tax rate is 20%. What will A Corp. report as diluted earnings per share for 2021, rounded to the nearest cent?

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