In 2009, Fun Company reports $5,000,000 of Net Income in the current year, after taking out 35% for taxes. They have determined that their weighted average shares outstanding before making any dilution adjustments is 3,000,000. Their executives have incentive stock options that provide them the opportunity to receive 120,000 shares of stock at an average exercise price of $25 per share. The share price has averaged $20 per share over 2009, with a peak price of $30 in late June. In addition to these stock options, Fun Company also has 100,000 shares of $100 par, 5% cumulative preferred stock that can be converted into 500,000 shares of common stock, as well as $10,000,000 in 8% convertible bonds that can be converted into 1,000,000 shares of common stock.

What is Diluted EPS?