What is owl diluted earnings per share

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problem 1: Owl Co. reported $450,000 net income and paid $50,000 common dividends for 2020, with a 35% tax rate and 100,000 common shares outstanding all year. On September 30, 2020, Owl issued $1,000,000, 6%, 5-year bonds at par, convertible to 25,000 common shares. If Owl has no other dilutive securities, what is Owl's 2020 diluted earnings per share?

Group of answer choices

Option 1: $3.86

Option 2: $3.91

Option 3: $4.38

Option 4: $3.68

Option 5: $4.33

Reference no: EM132782043

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