As of December 31, 2014, the Tatum Company had 2,000,000 shares of common stock outstanding. On January 1, 2015, Tatum issued 500,000 preferred shares convertible into 1,000,000 common shares. In 2015, Tatum declared and paid $1,200,000 in cash dividends on common shares and $400,000 in cash dividends on preferred shares. Net income for the year ended December 31, 2015 was $4,000,000. Assuming a 30% income tax rate, what should diluted earnings per share be for the year ended December 31, 2015? (Round to the nearest cent.)

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1 Calculate the weighted average number of common shares outstanding during the year Weighted averag... View the full answer