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6. Atwater Corporation has net income of $281,000 for the year ended December 31,201 and Common shares outstanding of 100,000 . The company did not
6. Atwater Corporation has net income of $281,000 for the year ended December 31,201 and Common shares outstanding of 100,000 . The company did not issue or repurchase additional Common shares during the year. Atwater Corporation has outstanding stock purchase options authorizing the holders to acquire 32,000 shares of Atwater common stock. The exercise price of the options was $20 while the average market price for the shares was $25. The current tax rate applicable to Atwater Corporation is 30\%. Atwater Corporation's basis earnings per share is S2.81. Compute Atwater Corporation's diluted earnings per share for the year ended December 31,201
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