Textbook Problem

Francis Company has 20,000 shares of common stock out-standing during all of 2019. It also has two convertible securities outstanding at the end of 2019. These are:

1. 1. Convertible preferred stock: 2,000 shares of 9.5%, $50 par, preferred stock were issued on January 2, 2019, for $60 per share. Each share of preferred stock is convertible into 3 shares of common stock. Current dividends have been declared. To date, no preferred stock has been converted.
2. 2. Convertible bonds: Bonds with a face value of $200,000 and an interest rate of 5.7% were issued at par in 2018. Each $1,000 bond is convertible into 22 shares of common stock. To date, no bonds have been converted.

Francis earned net income of $61,500 during 2019. Its income tax rate is 30%.

Required:

Compute the 2019 diluted earnings per share. What earnings per share amount(s) would Francis report on its 2019 income statement?