Answers:

A. 0.23

B. 0.25

C. 0.23

D. 0.28

Last year, East Corporation reported basic and diluted EPS in an amount less than basic EPS due to outstanding stock options. Those options were excercised on January 1 of the current year. During the current year, East Corporation had 15.0 million shares of common stock outstanding. Three thousand eight hundred 10% convertible bonds, each with $1,000 face value, were issued at face amount at the beginning of the year. East reported net income of $3.8 million for the year. Each bond is convertible into 10 shares of common stock. The tax rate is 25%. What is diluted EPS (rounded)? (Round your answer to 2 decimal places. Do not round your intermediate calculations.)