During 2021, Omnicom Corp had 1,000,000 shares of common stock and 60,000 shares of 6% preferred stock outstanding. The preferred stock does not have cumulative or convertible features. Omnicom declared and paid cash dividends of $440,000 and $220,000 to common and preferred shareholders, respectively, during 2021. On January 1, 2020, Omnicom issued $2,140,000 of convertible 5% bonds at face value. Each $1,000 bond is convertible into five common shares. Omnicom's net income for the year ended December 31, 2021, was $6.00 million. The income tax rate is 20%. What will Omnicom report as diluted earnings per share for 2021, rounded to the nearest cent? Multiple Choice None of these answer choices are correct. $6.02. $5.94. $5.72.
During 2021, Omnicom Corp had 1,000,000 shares of common stock and 60,000 shares of 6%
On January 1, 2020, Omnicom issued $2,140,000 of convertible 5%
Omnicom's net income for the year ended December 31, 2021, was $6.00 million. The income tax rate is 20%.
What will Omnicom report as diluted earnings per share for 2021, rounded to the nearest cent?
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None of these answer choices are correct.
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$6.02.
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$5.94.
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$5.72.
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