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Hominem Inc, has 100,000 common shares outstanding. Earnings from continuing operations amounted to $1,580,000 (after tax) for the year ended 31 December 204. Hominem's income

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Hominem Inc, has 100,000 common shares outstanding. Earnings from continuing operations amounted to $1,580,000 (after tax) for the year ended 31 December 204. Hominem's income tax rate is 25%. The company had no discontinued operations. At the end of 204, the market price of the company's common shares was $31. Hominem had these additional components in its capital structure at the end of the year: - 19,000 cumulative preferred shares outstanding since 202; each share is entitied to an annual dividend of $15 per share and is convertible into five shares of common after 30 June 209. - 4% debentures amounting to $580,000 were issued on 1 January 204. On this issue date, the bonds were recorded at $505,000. The debentures are convertible into 15 shares per $1,000. On 1 January 20X4, similar bonds with no conversion options had a market yield of 6%. Interest is payable annually. - Outstanding options permitting the holder to buy 5,000 common shares in 206 or later for $39 per share. Assume that Hominem Inc. had a loss on discontinued operations of $1,080,000 (after tax). Required: Compute diluted EPS on continuing operations. (Do not round intermediate calculations and round your answer to 2 decimal places.)

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