Given the subsequent data, compute diluted earnings per share.
(Diluted Earnings per share = Adjusted Earnings After Taxes / Shares Outstanding + All convertible securities)
Common Stock (500,000 shares at $5 par) $2,500,000
8% convertible debentures (5,000 bonds at $1,000 each) 5,000,000
Retained Earnings 5,000,000
Earnings before interest and taxes 2,800,000
Interest 400,000
Earnings before taxes 2,400,000
Earnings after taxes (50%) $1,200,000
Additional Requirements
Min Pages: 2
Level of Detail: Show all work