Question: During the current year, comma co. had an outstanding: 25,000 shares of $5 par common stock: 8,000 shares of $20 par, 10% cumulative preferred stock;

During the current year, comma co. had an outstanding: 25,000 shares of $5 par common stock: 8,000 shares of $20 par, 10% cumulative preferred stock; and 3,000 compensatory stock options. Each option can be exercised to purchase 1 share of common stock. The exercise price is $30 and the average market price per share during the current year was $40. Net income for the year was $200,000, no dividends were declared and the tax rate was 30%.

Calculate Commas diluted earnings per share for the current year. Show all calculations.

The answer is 7.15 per share. Can you explain through calculation?

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