Blossom Corporation reported net income of $213,860 in 2025 and had 53,900 shares of common stock outstanding throughout the year. Also outstanding all year were 4,500 shares of cumulative preferred stock, each convertible into 2 shares of common. The preferred stock pays an annual dividend of $5 per share. Blossom's tax rate is 50%. Compute Blossom's 2025 diluted earnings per share. (Round answer to 2 decimal places, e.g. 3.55.) Diluted earnings per share +A $

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Question
Blossom Corporation reported net income of $213,860 in 2025 and had 53,900 shares
of common stock outstanding throughout the year. Also outstanding all year
were 4,500 shares of cumulative preferred stock, each convertible into 2 shares of
common. The preferred stock pays an annual dividend of $5 per share. Blossom's tax
rate is 50%.
Compute Blossom's 2025 diluted earnings per share. (Round answer to 2 decimal places,
e.g. 3.55.)
Diluted earnings per share
+A
$
Transcribed Image Text:Blossom Corporation reported net income of $213,860 in 2025 and had 53,900 shares of common stock outstanding throughout the year. Also outstanding all year were 4,500 shares of cumulative preferred stock, each convertible into 2 shares of common. The preferred stock pays an annual dividend of $5 per share. Blossom's tax rate is 50%. Compute Blossom's 2025 diluted earnings per share. (Round answer to 2 decimal places, e.g. 3.55.) Diluted earnings per share +A $
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