At December 31, 2010, General Corporation Had 400 Shares of Common

At December 31, 2010, General Corporation had 400 shares of common stock outstanding. On October 1, 2011, an additional 100 shares of common stock were issued. In addition, General Corp. had $40,000 of 8 percent convertible bonds outstanding at December 31, 2010, which are convertible into 225 shares of common stock. No bonds were converted into common stock in 2011. Net income for the year ending December 31, 2011, was $14,000. Assuming the income tax rate was 50 percent, the diluted earnings per share for the year ended December 31, 2011, should be

A) $24.00.
B) $26.48.
C) $28.00.
D) $32.96.

Correct Answer:

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