DiCenta AG reported net income of 270,000 in 2019 and had 50,000 ordinary shares outstanding throughout the

Question:

DiCenta AG reported net income of €270,000 in 2019 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 2019 diluted earnings per share.
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...