Exercise 9: Veres Inc.'s net income is $120,000 and its weighted average common shares outstanding is 12,000. Veres Inc. has $1,000,000, 8%, 10 year convertible bonds, which were issued two years ago at a discount. This discount is amortized by $10,000 per year. Each $1,000 bond is convertible to 20 common shares. Corporate income tax rate is 20%. What is Veres Inc.'s diluted EPS for the year rounded to the nearest dollar? a. $7 b. $10 c. $5 d. $9 e $6