Earnings per Share

Western Financial Corporation reported net income of $154 million in 2015 and had a tax rate of 40%. Its capital structure for 2015 included:

Common stock January 1 60 million common shares outstanding March 1 12 million new shares were sold June 17 A 10% stock dividend was declared and distributed October 1 8 million shares were reacquired as treasury shares

The average market price of the common shares during 2015 was $25 per share. The share price on December 31, 2015, was $19 per share.

Nonconvertible Preferred Stock: 5 million shares, 8%, $10 par value, dividends declared on December 15, 2015, to be paid on January 10, 2016. Convertible Preferred Stock: 10 million shares, 8%, cumulative, $10 par value, convertible into 4.3 million common shares*. Employee Stock Options: Options granted in 2013, exercisable for 15 million common shares* at an exercise price of $20 per share. Stock Warrants: Warrants granted in 2014, exercisable for 4 million common shares* at an exercise price of $32.50 per share. Convertible Bonds: 10%, $300 million face amount issued in 2014, convertible into 12 million common shares*. *Already adjusted for the 10% stock dividend.

Calculate diluted EPS