On December 31, 2016, RojoLtd.had 2,000,000 common shares outstanding.On January 1, 2017, Rojo issued 500,000 non-cumulative preferred shares, which were convertible into 1,000,000 common shares.During 2017, Rojo paid cash dividends of $900,000 to the common shares and $300,000 to the preferred shares.Net income for calendar 2017, was $6,000,000.Assuming an income tax rate of 30%, the diluted earnings per share for 2017 is

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The Answer of On December 31, 2016, RojoLtd.had 2,000,000 common shares outstanding.On January 1, 2017, Rojo issued 500,000 non-cumulative preferred shares, which were convertible into 1,000,000 common shares.During 2017, Rojo paid cash dividends of $900,000 to the common shares and $300,000 to the preferred shares.Net income for calendar 2017, was $6,000,000.Assuming an income tax rate of 30%, the diluted earnings per share for 2017 is