(Solution) - Palo Alto Company earned net income of 43 800 during 2013 -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

Paper Format: APA

Pages: 5 Words: 1375

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Palo Alto Company earned net income of $43,800 during 2013. At the beginning of 2013, it had 10,000 shares of common stock outstanding; an additional 4,000 shares were issued on July 2. During 2013, 600 shares of 8%, $100 par, convertible preferred stock were outstanding the entire year. Dividends on this preferred stock were paid in 2013. Each share is convertible into 5 shares of common stock. The corporate income tax rate is 30%.
Required:
Compute the 2013 diluted earnings per share.