What should be the basic earnings per share for the year

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Question - Information concerning the capital structure of Sheridan Company is as follows:

 

December 31,

 

2021

2020

Common stock

155000 shares

155000 shares

Convertible preferred stock

15500 shares

15500 shares

5% convertible bonds

$2300000

$2300000

During 2021, Sheridan paid dividends of $0.90 per share on its common stock and $3 per share on its preferred stock. The preferred stock is convertible into 29200 shares of common stock. The 5% convertible bonds are convertible into 75800 shares of common stock. The net income for the year ended December 31, 2021, was $390000. Assume that the income tax rate was 32%.

Required - What should be the basic earnings per share for the year ended December 31, 2021, rounded to the nearest penny?

Reference no: EM133093169

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