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Cullumber Co. had 205000 shares of common stock, 20800 shares of convertible preferred stock, and $607000 of 10% convertible bonds outstanding during 2025. The preferred stock is convertible into 39200 shares of common stock. During 2025, Cullumber paid dividends of $0.56 per share on the common stock and $1.70 per share on the preferred stock. Each $1,000 bond is convertible into 45 shares of common stock. Cullumber's net income for 2025 was $360000 and its income tax rate was 35%. Diluted earnings per share for 2025 is O $1.47. ○ $1.55. O $1.31. O $1.37.

Cullumber Co. had 205000 shares of common stock, 20800 shares of convertible preferred stock, and $607000 of 10% convertible bonds outstanding during 2025. The preferred stock is convertible into 39200 shares of common stock. During 2025, Cullumber paid dividends of $0.56 per share on the common stock and $1.70 per share on the preferred stock. Each $1,000 bond is convertible into 45 shares of common stock. Cullumber's net income for 2025 was $360000 and its income tax rate was 35%. Diluted earnings per share for 2025 is O $1.47. ○ $1.55. O $1.31. O $1.37.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Cullumber Co. had 205000 shares of common stock, 20800 shares of convertible preferred stock, and $607000 of 10% convertible bonds outstanding during 2025. The preferred stock is convertible into 39200 shares of common stock. During 2025, Cullumber paid dividends of $0.56 per share on the common stock and $1.70 per share on the preferred stock. Each $1,000 bond is convertible into 45 shares of common stock. Cullumber's net income for 2025 was $360000 and its income tax rate was 35%. Diluted earnings per share for 2025 is ○ $1.47. ○ $1.55. ○ $1.31. ○ $1.37.
Transcribed Image Text:Cullumber Co. had 205000 shares of common stock, 20800 shares of convertible preferred stock, and $607000 of 10% convertible bonds outstanding during 2025. The preferred stock is convertible into 39200 shares of common stock. During 2025, Cullumber paid dividends of $0.56 per share on the common stock and $1.70 per share on the preferred stock. Each $1,000 bond is convertible into 45 shares of common stock. Cullumber's net income for 2025 was $360000 and its income tax rate was 35%. Diluted earnings per share for 2025 is ○ $1.47. ○ $1.55. ○ $1.31. ○ $1.37.
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