In$,20$X$4,$ Wilson Company has net income of $$50,000$ and the weighted average common shares outstanding is $15,000.$ Additionally, the company has cumulative convertible preferred stock and $4,000$ options, where each option allows the holder to purchase one share of stock for $$16$ per share. The preferred stock pays an annual dividend of $$2,000$ and can be converted to $2,500$ shares of common stock. The company's average share price during the year was $$25$ and its tax rate is $25\%.$ Compute diluted EPS for $20$X$4.$

Answer rating: 100% (QA)

Heres the breakdown Net Income 500000 Weighted Average Common Shares Outstanding 150000 Convertible Preferred Stock Annual Dividend 2000 Conversion Ra... View the full answer