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Question - Brown Company had 200,000 shares of P20 par ordinary and 20,000 shares of P100 par, 6% cumulative, convertible preference share outstanding for the entire year ended December 31, 2012. Each preference shares are convertible into 5 shares of ordinary. The company reported net income during the year in the amount of P840,000. What is the diluted earnings per share for the year ended December 31, 2012?
a. 2.40
b. 2.80
c. 3.60
d. 4.20
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