Selected information from Able Company 抯 financial activities in the year 2001 is as follows:
Net Income was $720,000.
1,000,000 shares of common stock were outstanding on January 1.
1,000 shares of eight percent, $1,000 par value preferred shares were outstanding on
January 1 and dividends were paid in 2001.
The tax rate was 40 percent.
Dividends were paid in 2001.
The average market price per share was $20 in 2001.
6,000 shares of three percent $500 par value preferred shares, convertible into common
shares at a rate of 30 common shares for each preferred share, were outstanding for the entire
year.
Able 抯 diluted earnings per share (Diluted EPS) for 2001 was closest to:
A. $0.55.
B. $0.65.
C. $0.66.
D. $0.54.