Question: Kolb Corp. has ( $ 1 ) million face amount, ( 6 % ) convertible preferred stocks issued at

Kolb Corp. has \(\$ 1\) million face amount, \(6\%\) convertible preferred stocks issued at par outstanding. Each \(\$ 100\) par value stock can be converted into 5 shares of common stock. The company's tax rate is \(40\%\). The incremental effect of the convertible preferred stocks on diluted EPS will be
\$0.83.
\$0.72.
\$1.20.
Kolb Corp. has \ ( \ $ 1 \ ) million face amount,

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