Butler Company has 30,000 shares of common stock outstanding during all of 2007. This common stock has been selling at an average market price of $45 per share. The company also has outstanding for the entire year compensatory share options to purchase 4,000 shares of common stock at $32 per share. The unrecognized compensation cost (net of tax) relating to these share options is $3 per share. During 2007 Butler Company earned income of $36,000 after income taxes of 30%.

Required

Compute the 2007 diluted earnings per share.