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Santana Corporation has 370,000 shares of common stock outstanding throughout 2018. In addition, the corporation has 4,800, 20-year, 9% bonds issued at par in 2016. Each $1,000 bond is convertible into 20 shares of common stock after 9/23/19. During the year 2018, the corporation earned $670,440 after deducting all expenses. The tax rate was 30%.
Question 1: Compute the proper earnings per share for 2018
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