USE THE FOLLOWING INFORMATION:

Net income after tax = $2,600,000

Beginning of year outstanding shares of common stock = 722,500 shares

(before consideration of stock options)

Stock Options Available to Executives:

Granted 5 years ago

Exercisable this year.

For 500,000 shares

Exercise price per share = $10.00

Market price per share = $42.00

Basic Earnings Per Share = $1.31

find diluted earnings per share