Isabelle Leclerc is the controller at Camden Pharmaceutical Industries, a public company. She is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Camdens external financial statements. The following is selected financial information for the fiscal year ended June 30, 2020:

CAMDEN PHARMACEUTICAL INDUSTRIES
Selected Statement of Financial Position Information
June 30, 2020
Long-term debt
	Notes payable, 10%			$1,000,000
	7% convertible bonds payable			5,000,000
	10% bonds payable			6,000,000
		Total long-term debt		$12,000,000
Shareholders' equity
	Preferred shares, $4.25 cumulative, 100,000 shares authorized, 25,000 shares issued and outstanding			$1,250,000
	Common shares, unlimited number of shares authorized, 1,000,000 shares issued and outstanding			4,500,000
	Contributed surplusconversion rights			500,000
	Retained earnings			6,000,000
		Total shareholders equity		$12,250,000

The following transactions have also occurred at Camden:

1.		Options were granted by the company in 2018 to purchase 100,000 shares at $15 per share. Although no options were exercised during 2020, the average price per common share during fiscal year 2020 was $20.
2.		Each bond was issued at face value. The 7% convertible debenture will convert into common shares at 50 shares per $1,000 bond. It is exercisable after five years and was issued in 2019. Ignore any requirement to record the bonds debt and equity components separately.
3.		The $4.25 preferred shares were issued in 2018.
4.		There are no preferred dividends in arrears, and preferred dividends were not declared in fiscal year 2020.
5.		The 1.0 million common shares were outstanding for the entire 2020 fiscal year.
6.		Net income for fiscal year 2020 was $1.5 million, and the average income tax rate was 30%.

Determine an incremental per share effect for 7% bonds. (Round earnings per share to 2 decimal places, e.g. 15.25.)

Potentially dilutive security		Incremental Numerator Effect		Incremental Denominator Effect		EPS
7% Bonds		$				$

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Rank the potentially dilutive securities from most dilutive to least dilutive.

7% Bonds

Options

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Calculate diluted earnings per share for 2020. (Round earnings per share to 2 decimal places, e.g. 15.25.)

		Numerator		Denominator		EPS
Basic		$				$

Sub Total

		$				$

Diluted EPS