During the year P had 15584 shares of common stock outstanding. P had fully vested incentive stock options exercisable at $6 per share to obtain 2044 shares of common stock when the average market price and ending market price of the stock of common stock was $46. The net income for the year was $206729. The income tax rate was 33%. For the year diluted EPS was: 11.73 Answer: At December 31, 2018 and 2017, ABC had 17563 shares of common stock and $12000 of 10% convertible bonds issued at par. Each 1000 bond is convertible to 169 to shares of common stock. No potential common shares other than the convertible bonds were outstanding during 2018. Net income for 2018 was $119426. The income tax rate was 34%. For 2018, diluted EPS was: Answer: 40.50