During the current year, East Corporation had 5 million shares of common stock outstanding. 3,000, 7% convertible bonds, each with $1,000 face value, were issued at face amount at the beginning of the year. East reported income before tax of $7 million and net income of $4.2 million for the year. Each bond is convertible into 10 shares of common stock. What is diluted EPS? (Round your answer to 2 decimal places. Do not round your intermediate calculations.)

rev: 04_09_2018_QC_CS-123854, 05_25_2018_QC_CS-127783

Multiple Choice

• $0.84.

• $0.83.

• $0.86-Incorrect

• $0.87.