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Question - Mosco Company had 500,000 shares of common stock issued and outstanding at December 31, 2017. On July 1, 2018, 300,000 additional common stock was issued. On January 1, 2018, Mosco issued 400,000 shares of convertible preferred stock.
Each preferred share can be converted to one share of common stock.
During 2018, Mosco declared and paid $140,000 cash dividends on the common stock and $170,000 on the convertible preferred stock. Net income for the year ended December 31, 2018 was $1,000,000. What should be Mosco's 2018 earnings per common share and diluted EPS rounded to the nearest penny?
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