How to shares of cumulative preferred stock


DiCenta Corporation reported net income of $296,000 in 2012 and had 50,000 shares of common stock outstanding throughout the year. Also outstanding all year were 6,490 shares of cumulative preferred stock, each convertible into 2 shares of common. The preferred stock pays an annual dividend of $5 per share. DiCenta' tax rate is 40%. Compute DiCenta' 2012 diluted earnings per share.

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Accounting Basics: How to shares of cumulative preferred stock
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