The following information relates to the company for the year ended 31 May 2019:

(a) The net profit of the company for the year ended 31 May 2019 and which is attributable to the preference and ordinary shareholders of the company was Sh.146 million. Of this amount, the net profit attributable to operations that have since then been discontinued was Sh.33 million.

(b) The ordinary shares of Sh.10 par value, in issue on 1 June 2018 totaled Sh.60 million. On 1 September 2018, ordinary shares of Sh.10 par value were issued at market price, for a sum of Sh.12 million.

(c) The average market price of the shares of the company for the year ended 31 May 2019 was Sh.100 and the closing market price of the shares on 31 May 2019 was Sh.110.

(d) On 1 January 2019, 300,000 ordinary shares of Sh.10 par value were issued at a price of Sh.80 per share. Sh.40 of this price was payable on 1 January 2019 and Sh.40 payable on 1 January 2020. Dividend participation of the issued shares is at 50% until they are fully paid.

(e) Convertible debentures of Sh.200 million at an interest rate of 5 percent per annum had been issued at par on 1 April 2018. Half a years interest is payable on 30 September and 31 March each year. Each Sh.10,000 of debentures is convertible at the holders option into 300 ordinary shares at any time. Sh.50 million of debentures was converted on 1 April 2019 when the market price of the shares was Sh.105 per share.

(f) Sh.10 million of convertible preference shares of Sh.10 had been issued in the year ended 31 May 2016. Dividends on these shares are paid half-yearly on 30 November and 31 May at the rate of 6% per annum. The preference shares are convertible into ordinary shares at the option of the preference shareholder based on two preference shares converted into ordinary shares for 1 ordinary share fully paid. On 1 December 2018, holders of 6 million preference shares converted them into ordinary shares.

(g) Warrants to buy 6 million ordinary shares at Sh.6.60 per share were issued on 1 January 2018. The warrants expire in five years. All the warrants were exercised on 30 June 2019.

(h) The financial statements of the company for the year ended 30 June 2019 were approved on 1 August 2019.

(i) The rate of taxation applicable is 30%.

Required:

Diluted Earnings per Share (EPS) of the company for the year ended 31 May 2019 (10 marks)