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Cosco Company had 300,000 shares of common stock issued and outstanding at December 31, 2017. During 2018, no additional common stock was issued. On January 1, 2018, Cosco issued 400,000 shares of convertible preferred stock.Each preferred share can be converted to one share of common stock.
Problem 1: During 2018, Cosco declared and paid $150,000 cash dividends on the common stock and $180,000 on the convertible preferred stock. Net income for the year ended December 31, 2018 was $960,000. What should be Cosco's 2018 earnings per common share and diluted EPS rounded? to the nearest penny
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