Calculate tomorrow inc diluted eps

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Question 1: Tomorrow, Inc. has the following capital structure in 2018: common stock totaling 200,000 shares and convertible preferred stock totaling 10,000 shares. The preferred stock is convertible into 25,000 shares of common stock. During 2018, Tomorrow, Inc. paid dividends of $2.00 per share on its common stock and $1.50 per share on its preferred stock. Net Income in 2018 was $315,000. Calculate Tomorrow Inc.'s Diluted EPS.

Option 1: $1.33 per share

Option 2: $1.40 per share

Option 3: $1.50 per share

Option 4: $1.58 per share

Reference no: EM132578967

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