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Problem 1: At December 31, 2020, Rain Company had 2,000,000 shares of ordinary shares outstanding. On January 1, 2021, Rain Company issued 500,000 shares of preference, which were convertible into 1,000,000 shares of ordinary shares. During 2021, Rain declared and paid P1,500,000 cash dividends on the ordinary shares and P500,000 cash dividends on the preference shares. Net income for the year ended December 31, 2021 was P5,000,000. Assuming an income tax rate of 25%, how much is the diluted earnings per share for the year ended December 31, 2021?
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