At December 31, 2020, Tatum Company had 2000000 shares of common stock outstanding. On January 1, 2021, Tatum issued 500000 shares of preferred stock which were convertible into 1000000 shares of common stock. During 2021, Tatum declared and paid $1200000 cash dividends on the common stock and $400000 cash dividends on the preferred stock. Net income for the year ended December 31, 2021, was $5000000. Assuming an income tax rate of 30%, what should be diluted earnings per share for the year ended December 31, 2021

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan