1. A company has 84,000 shares of common stock outstanding on January 18,000 shares are issued on May 1. 6000 shares are purchased on November 1. The company has $800,000 of 8-year, 8% bonds issued 3 years ago at 99. Each $1000 bond is convertible into 18 shares of common stock. Amortize the premium on the bonds using the straight-line method. Net income is $400,000. The tax rate is 20%. Dilutive eps is

1. $4.21
2. $4.23
3. $4.12
4. $4.13