Answer:
$2.73
Step-by-step explanation:
Diluted Earnings Per Share = Earnings Attributed to Common Stockholders ÷ Weighted Average Number of Common Stockholders Outstanding
where,
Earnings Attributed to Common Stockholders = $420,000
and
Weighted Average Number of Common Stockholders Outstanding = 110,000 + (11,000 x 4) = 154,000
therefore,
Diluted Earnings Per Share = $420,000 ÷ 154,000 = $2.73
Conclusion
Rudyard's diluted EPS is $2.73