USE THE FOLLOWING INFORMATION:

Net income after tax = $5,000,000

Beginning of year outstanding shares of common stock = 654,000 shares

(before consideration of stock options)

Stock Options Available to Executives:

Granted 5 years ago

Exercisable this year.

For 335.000 shares

Exercise price per share = $45.00

Market price per share = $40.00

Basic Earnings Per Share = $6.2

Diluted earnings per share equals