At December 31, 2010, the Roberts Company Had 700,000 Shares

At December 31, 2010, the Roberts Company had 700,000 shares of common stock outstanding. On September 1, 2011, an additional 300,000 shares of common stock were issued. In addition, Roberts had $20,000,000 of 8 percent convertible bonds outstanding at December 31, 2010, which are convertible into 400,000 shares of common stock. No bonds were converted into common stock in 2011. The net income for the year ended December 31, 2011, was $6,000,000. Assuming the income tax rate was 40 percent, what should be the diluted earnings per share for the year ended December 31, 2011?

A) $5.00
B) $5.53
C) $5.80
D) $8.30

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