Brief Exercise 16-13
Pearl Corporation earned net income of $370,000 in 2017 and had 108,000 shares of common stock outstanding throughout the year. Also outstanding all year was $840,000 of 9% bonds, which are convertible into 20,000 shares of common. Pearl’s tax rate is 40 percent.
Compute Pearl’s 2017 diluted earnings per share. (Round answer to 2 decimal places, e.g. 3.55.)
Diluted earnings per share