6. ABC Milk Limited reported net income of $222 million and had 22.2 million common stock shares outstanding for the year 2018. During 2018, the firm issued: a) 100 preferred stock shares at the par value of $100 with a preferred dividend rate of 10%.

b) 1,500 call options, each option gives option holder a right to buy 100 shares at a strike price $120 from 01 September to 30 September 2018.

c) 1,000 bonds at $1,000 par value and 8% interest rate, each bond is convertible into 100 shares of common stock Assume that the 1000 convertible bonds have been converted into common shares by the bond holders during the year 2018 and the 30 call options have also been exercised by the option holders on 25 September 2018 when the market price of the stock is $122.00. Calculate diluted earnings per share assuming tax rate equals to 40%. [