Question: Wildhorse Corporation reported net income of $359,700 in 2017 and had 54,800 shares of common stock outstanding throughout the year. Also outstanding all year were 5,300 shares of cumulative preferred stock, each convertible into 2 shares of common. The preferred stock pays an annual dividend of $5 per share. Wildhorse's tax rate is 40%. Compute Wildhorse's 2017 diluted earnings per share.