he Pfeiffer Corporation reports net income in the current year of $800,000. Pfeiffer had a nonconvertible preferred stock paying $70,000 in cash dividends. Another $2.00 per share in dividends was paid to the common stockholders. There are 190,000 shares of this common stock outstanding throughout the year. In addition, the company has 20,000 stock options outstanding. For $2, each option can be converted into one share of common stock. The average price of the stock during the year was $8. The company has an effective tax income rate of 20 percent. What is Pfeiffer's diluted earnings per share (rounded) ?

Answer rating: 100% (QA)

To calculate the diluted earnings per share EPS we need to consider the impact of the pot... View the full answer