Question - At December 31, 2010, Benjamin Company had 700 shares of common stock outstanding. On September 1, 2011, an additional 300 shares of common stock were issued. In addition, Benjamin had $20,000 of 8 percent convertible bonds outstanding at December 31, 2010, which are convertible into 400 shares of common stock. No bonds were converted into common stock in 2011. Net income for the year ended December 31,2011, was $6,000. Assuming an income tax rate of 50 percent what would be the company's diluted earnings per share for the year ended December 31, 2011?
a. $7.50
b. $5.67
c. $5.00
d. $4.33