Problem
Santana Corporation has 390,000 shares of common stock outstanding throughout 2018. In addition, the corporation has 5, 300, 20-year, 9% bonds issued at par in 2016. Each $1,000 bond is convertible into 20 shares of common stock after 9/23/19. During the year 2018, the corporation earned $714, 870 after deducting all expenses. The tax rate was 30%. Compute the proper earnings per share for 2018.