At December 31,2013,HIJ had 2,000 common shares outstanding.On January 1,2014,HIJ issued 1,000 convertible preferred (one share of common for one share of preferred)shares.During 2014,HIJ declared and paid $4,000 cash dividends on the common and $4,000 cash dividends on the preferred (the annual requirement).Net income for the year ended December 31,2014,was $36,000.Assuming an income tax rate of 50 percent,what should be diluted earnings per share for the year ended December 31,2014?

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The Answer of At December 31,2013,HIJ had 2,000 common shares outstanding.On January 1,2014,HIJ issued 1,000 convertible preferred (one share of common for one share of preferred)shares.During 2014,HIJ declared and paid $4,000 cash dividends on the common and $4,000 cash dividends on the preferred (the annual requirement).Net income for the year ended December 31,2014,was $36,000.Assuming an income tax rate of 50 percent,what should be diluted earnings per share for the year ended December 31,2014?

At December 31,2013,HIJ Had 2,000 Common Shares Outstanding