1. Abc Company earns profits of $2,500,000 for the year ended December 31, 2008, Abc has 1,000,000 shares outstanding during the year and pays taxes at the rate of 40%. Abc paid preference dividends amounting to $50,000 in 2008. The average market price of the Abc stock over the year was $50. Abc has 10,000 stock options outstanding, which have an exercise price of $30. Calculate ABC’s diluted EPS for 2008.  (10 Marks) – 700 Words Answer Compulsory