Example: Neuman Company had 1000 shares of Common Stock outstanding on December 31, 2008. The company issued 500 shares on April 1, 2009 and purchased 300 shares on September 1. The company also has 10% Convertible Bonds of $1M outstanding during the entire period that was issued at par. The bond is convertible into 20,000 common shares. Income available to Common Shareholders was $250,000. The tax rate was 40%. What is the Diluted EPS?

Example: Neuman Company had 1000 shares of Common Stock outstanding on December 31,2008 . The company issued 500 shares on April 1, 2009 and purchased 300 shares on September 1. The company also has 10% Convertible Bonds of $1M outstanding during the entire period that was issued at par. The bond is convertible into 20,000 common shares. Income available to Common Shareholders was $250,000. The tax rate was 40%. What is the Diluted EPS