Datatec, Inc

Datatec, Inc., had 400,000 shares of $20 par common stock and 40,000 shares of $100 par, 6% cumulative, convertible preferred stock outstanding for the entire year ended December 31, 2011. Each share of the preferred stock is convertible into 5 shares of common stock. Datatec's net income for 2011 was $1,680,000. For the year ended December 31, 2011, the diluted earnings per share is

A) $2.40.
B) $2.80.
C) $3.60.
D) $4.20.

Correct Answer:

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