The company has 46000 common shares outstanding and 10000 preferred shares, redeemable at $100000, convertible at 2 common shares for 1 preferred share and bear cumulative dividend at 5% per annum. company also has the stock option plan that is issued on Jan 1 2018 with 30000 options; the exercise price is $5, the average common share price during the year is $7. on June 30 2018, 10000 shares are exercised, and the FMV of shares when exercised is $6.75. the 2018 net income is 1073000. calculate the diluted EPS.