A company computed basic earnings per share of $0.22 for 2019 as follows:

Net income available to Common Shares = 200,000

Weighted average shares outstanding = 900,000

In addition, throughout the year 2019, the company had the following:

• $1M, 7% convertible bonds. The bonds had originally been issued at par value and are convertible into 400,000 shares of common stock.
• 200,000 fully vested stock options with an exercise price of $25 per share. The average common stock price for the year was $40 per share. The options were originally granted in 2009.
• The effective tax rate was 20%

Required: Compute diluted EPS