Compute diluted earnings per share.
July 19th, 2019
DiCenta Corporation reported net income of $262,000 in 2012 and had 50,000 shares of common stock outstanding throughout the year. Also outstanding all year were 6,340 shares of cumulative preferred stock, each convertible into 2 shares of common. The preferred stock pays an annual dividend of $5 per share. DiCenta’ tax rate is 40%. Compute DiCenta’ 2012 diluted earnings per share. (Round answer to 2 decimal places, e.g. 5.23.)