At December 31, 2024, Carla Vista Co. had 1140000 shares of common stock outstanding. In addition, Carla Vista had 454000 shares of preferred stock which were convertible into 741000 shares of common stock. During 2025, Carla Vista paid $1250000 cash dividends on the common stock and $792000 cash dividends on the preferred stock. Net income for 2025 was $6865650 and the company's income tax rate was 20%. Diluted earnings per share for 2025 was O $6.02. O $6.00. O $2.56. O $3.65.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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At December 31, 2024, Carla Vista Co. had 1140000 shares of common stock outstanding. In addition, Carla Vista had 454000 shares
of preferred stock which were convertible into 741000 shares of common stock. During 2025, Carla Vista paid $1250000 cash
dividends on the common stock and $792000 cash dividends on the preferred stock. Net income for 2025 was $6865650 and the
company's income tax rate was 20%. Diluted earnings per share for 2025 was
$6.02.
O $6.00.
O $2.56.
O $3.65.
Transcribed Image Text:At December 31, 2024, Carla Vista Co. had 1140000 shares of common stock outstanding. In addition, Carla Vista had 454000 shares of preferred stock which were convertible into 741000 shares of common stock. During 2025, Carla Vista paid $1250000 cash dividends on the common stock and $792000 cash dividends on the preferred stock. Net income for 2025 was $6865650 and the company's income tax rate was 20%. Diluted earnings per share for 2025 was $6.02. O $6.00. O $2.56. O $3.65.
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