During the current year, Moore Corp. had the following two classes of stock issued and outstanding for the entire year:

--- 100,000 shares of common stock, $1 par. --- 1,000 shares of 4% preferred stock, $100 par, convertible share for share into common stock. This stock is cumulative, whether or not earned, and no preferred dividends are in arrears.

Moores current-year net income was $900,000, and its income tax rate for the year was 30%. Diluted earnings per share (DEPS) for the current year are

a)

b)

c) $8.91

d)

Note: The correct answer is c) $8.91 but please explain the steps of the solution thoroughly.

Thank you in advance!