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On January 2, 2018, Titan Co. issued at par $2,000,000 of 7% convertible bonds. Each $1,000...

On January 2, 2018, Titan Co. issued at par $2,000,000 of 7% convertible bonds. Each $1,000 bond is convertible into 10 shares of common stock. No bonds were converted during 2018. Titan had 200,000 shares of common stock outstanding during 2018. Titan’s 2018 net income was $900,000 and the income tax rate was 30%. Titan’s diluted earnings per share for 2018 would be (rounded to the nearest penny): [8 points]

Question 5 options:

$5.00

$4.72

$4.54

$4.50
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