Question

The following information was extracted from Smurm Corporation's 2006 annual report:

Common stock:
Share outstanding 12/31/2015	90 million
New shares issued 4/1/2016	10 million
Share outstanding 12/31/2016	100 million
Preferred stock:
$10 par, 10% convertible into 2 shares of common stock, share outstanding	50 million
Options each to purchase one common share at $50 per share	1 million
Market price of stock:
Average for year	$75
Beginning of year	$70
End of year	$78
Preferred dividends paid	$50,000,000
Net income for 2016	$350,000,000

Diluted earnings per share for 2016 was:

Group of answer choices

$2.00

$3.52

$2.03

$3.07

Answer 1