A company is preparing its calculation of diluted EPS for the year ended December 31, Year 2. On August 1, Year 1, the company issued 30,000$4 cumulative preferred shares. Each preferred share is convertible into eight common shares. Preferred share dividends of $120,000 were declared before year end but not paid until February 1 , Year 3 . The company's tax rate is 25% and it reports under IFRS. What is the incremental EPS for the preferred shares? $0.50$0.38$0$4.00