During 2018, angel corporation had 900,000 shares of common stock and 50,000 shares of 6% preferred stock outstanding. the preferred stock does not have cumulative or convertible features. angel declared and paid cash dividends of $300,000 and $150,000 to common and preferred shareholders, respectively, during 2018. on january 1, 2017, angel issued $2,000,000 of convertible 5% bonds at face value. each $1,000 bond is convertible into five common shares. angel's net income for the year ended december 31, 2018, was $6 million. the income tax rate is 20%. what will angel report as diluted earnings per share for 2018, rounded to the nearest cent?

Sam and diane are completing their federal income taxes for the year and have identified the amounts listed here. how much can they rightfully deduct? • agi: $80,000 • medical and dental expenses: $9,000 • state income taxes: $3,500 • mortgage interest: $9,500 • charitable contributions: $1,000.

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.

Afamily wishes to save for future college expenses. which financial tool should the family invest in?