Hominem Inc has 1 0 0 , 0 0 0 common shares outstanding Earnings from continuing operations amounted t o $ 1 , 7 2 0 , 0 0 0 ( a f t e r tax ) for the year ended 3 1 December 2 0 X 4 Hominem s income tax rate i s 2 5 The company had n o discontinued operations A t the end o f 2 0 X 4 , the market price o f the company s common shares was $ 3 8 Hominem had these additional components i n its capital structure a t the end o f the year 1 5 , 0 0 0 cumulative preferred shares outstanding since 2 0 X 2 each share i s entitled t o a n annual dividend o f $ 1 0 per share and i s convertible into five shares o f common after 3 0 June 2 0 X 9 4 debentures amounting t o $ 7 2 0 , 0 0 0 were issued o n 1 January 2 0 X 4 O n this issue date, the bonds were recorded a t $ 6 4 5 , 0 0 0 The debentures are convertible into 1 0 shares per $ 1 , 0 0 0 O n 1 January 2 0 X 4 , similar bonds with n o conversion options had a market yield o f 1 2 Interest i s payable annually Outstanding options permitting the holder t o buy 5 , 0 0 0 common shares i n 2 0 X 6 o r later for $ 4 6 per share Compute diluted EPS, using a cascade i f appropriate ( D o not round intermediate calculations and round your answer t o 2 decimal places )

Question

Hominem Inc  has 1 0 0 , 0 0 0 common shares outstanding  Earnings from continuing operations amounted t o $ 1 , 7 2 0 , 0 0 0 ( a f t e r tax ) for the year ended 3 1 December 2 0 X 4   Hominem s income tax rate i s 2 5     The company had n o discontinued operations  A t the end o f 2 0 X 4 , the market price o f the company s common shares was $ 3 8   Hominem had these additional components i n its capital structure a t the end o f the year  1 5 , 0 0 0 cumulative preferred shares outstanding since 2 0 X 2   each share i s entitled t o a n annual dividend o f $ 1 0 per share and i s convertible into five shares o f common after 3 0 June 2 0 X 9   4   debentures amounting t o $ 7 2 0 , 0 0 0 were issued o n 1 January 2 0 X 4   O n this issue date, the bonds were recorded a t $ 6 4 5 , 0 0 0   The debentures are convertible into 1 0 shares per $ 1 , 0 0 0   O n 1 January 2 0 X 4 , similar bonds with n o conversion options had a market yield o f 1 2     Interest i s payable annually  Outstanding options permitting the holder t o buy 5 , 0 0 0 common shares i n 2 0 X 6 o r later for $ 4 6 per share  Compute diluted EPS, using a cascade i f appropriate  ( D o not round intermediate calculations and round your answer t o 2 decimal places  )

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Hominem Inc. has 1 0 0 , 0 0 0 common shares outstanding. Earnings from continuing operations amounted t o $ 1 , 7 2

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