Eps due to outstanding stock options

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Last year, Wahlen Corporation reported basic and diluted EPS in an amount less than basic EPS due to outstanding stock options. Those options were exercised on January 1 of the current year.

During the current year, Wahlen Corporation had 3.0 million shares of common stock outstanding. Two thousand two hundred 15% convertible bonds, each with $1,000 face value, were issued at face amount at the beginning of the year. Wahlen reported net income of $2.2 million for the year. Each bond is convertible into 10 shares of common stock. The tax rate is 25%. What is diluted EPS (rounded)?

Reference no: EM133307312

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