Hanson co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000 of 5% convertible bonds outstanding during 2015. the preferred stock is convertible into 40,000 shares of common stock. during 2015, hanson paid dividends of $.60 per share on the common stock and $2 per share on the preferred stock. each $1,000 bond is convertible into 45 shares of common stock. the net income for 2015 was $400,000 and the income tax rate was 30%.diluted earnings per share for 2015 is (rounded to the nearest penny)$1.53.$1.67.$1.41.$1.39.

Financial markets and channel to . they also channel money from individuals who want to for the future to those who need cash to spend today. a third function of financial markets is to allow individuals and businesses to adjust their risk. for example, , such as the vanguard index fund, and , such as spdr's or “spiders,” allow individuals to spread their risk across a large number of stocks. financial markets provide other mechanisms for sharing risks. for example, a wheat farmer and a baker may use the to reduce their exposure to wheat prices. financial markets and intermediaries allow investors to turn an investment into cash when needed. for example, the of public companies are because they are traded in huge volumes on the . are the main providers of payment services by offering checking accounts and electronic transfers. finally, financial markets provide information. for example, the of a company that is contemplating an issue of debt can look at the yields on existing to gauge how much interest the company will need to pay.