The information below pertains to Kingbird Company for 2018.
Net income for the year $1,150,000
6% convertible bonds issued at par ($1,000 per bond); each bondis convertible into 30 shares of common stock 2,040,000
6% convertible, cumulative preferred stock, $100 par value; eachshare is convertible into 3 shares of common stock 4,130,000
Common stock, $10 par value 6,030,000
Tax rate for 2018 40%
Average market price of common stock $25 per share There were nochanges during 2018 in the number of common shares, preferredshares, or convertible bonds outstanding. There is no treasurystock. The company also has common stock options (granted in aprior year) to purchase 73,600 shares of common stock at $20 pershare.
Compute diluted earnings per share for 2018.
