Acc423 Intermediate Accounting: BE16-13 DiCenta Corporation reported net income of $270,000 in 2012

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Acc423 Intermediate Accounting



BE16-13

DiCenta Corporation reported net income of $270,000 in 2012 and had 50,000 shares of common stock outstanding throughout the year. Also outstanding all year were 5,000 shares of cumulative preferred stock, each convertible into 2 shares of common. The preferred stock pays an annual dividend of $5 per share. DiCenta’ tax rate is 40%. Compute DiCenta’ 2012 diluted earnings per share. (Round answer to 2 decimal places, e.g. 5.23.)
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