DiCenta Corporation reported net income of $270,000 in 2010 and had 50,000 ordinary shares outstanding throughout the

Question:

DiCenta reported net income of $270,000 in 2010 and had 50,000 ordinary shares outstanding throughout the year. Also outstanding all year were 5,000 shares of cumulative preference shares, each convertible into 2 ordinary shares. The preference shares pay an annual of $5 per share. DiCenta’s tax rate is 40%. Compute DiCenta’s 2010 diluted earnings per share.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...