The Following Information Relates to the SPE Company in 2014

The following information relates to the SPE company in 2014. Net income: $50,000
Common shares outstanding on January 1: 30,000
On June 30 issued 2,000 8% cumulative convertible preferred shares
$100 par,each convertible into 10 common shares
Issued a 40% stock dividend on Sept.30
What is the diluted EPS? (Rounded to the nearest cent)

A) $1.00
B) $0.89
C) $0.81
D) $0.76