Calculate Casson Corp diluted earnings per share

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Problem - Casson Corp. has provided the following information for its year ended December 31, 2019:

Net income $450,000

Number of common shares issued and outstanding at December 31, 2018 600,000

Number of shares issued on March 31, 2019 100,000

Preferred shares, $4, cumulative, 20,000 shares issued and outstanding; each preferred share is convertible into 16 common shares $2,000,000

Convertible bonds, 5%; each $1,000 bond is convertible into 60 common shares $10,000,000

Tax rate 40%

Required - Calculate Casson Corp.'s diluted earnings per share for the year ended December 31, 2019.

Reference no: EM133104349

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