An analyst gathers the following information about a company's fiscal year ended 31 December:
- Net income: €2,500,000
- Weighted average common shares outstanding during the year: 2,000,000
- Convertible preferred shares outstanding: 1,000,000
- Dividend per convertible preferred share: €1
One convertible preferred share is convertible into two common shares. If the tax rate is 40% and there are no other potentially dilutive securities outstanding, the reported diluted earnings per share (EPS) is closest to: | Chartered Financial Analyst Level 1 Quiz - LeetQuiz
Chartered Financial Analyst Level 1
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An analyst gathers the following information about a company's fiscal year ended 31 December:
Net income: €2,500,000
Weighted average common shares outstanding during the year: 2,000,000
Dividend per convertible preferred share: €1
One convertible preferred share is convertible into two common shares. If the tax rate is 40% and there are no other potentially dilutive securities outstanding, the reported diluted earnings per share (EPS) is closest to:
