Watered Down Ltd has a profit after tax of $693581 for the period ended 30 June 20X5. Watered Down Ltd also has $1000000 of 8% cumulative preference shares. These preference shares cannot be converted into ordinary shares and their dividends are not tax deductible. As at 1 July 20X4 there were 3000000 fully paid ordinary shares on issue. Watered Down Ltd also has $1500000 in convertible debentures issued for the full year. It pays interest of 6% per annum and could be converted to 200000 ordinary shares at the option of the debenture holders. There are also 180000 share options currently on issue with an exercise price of $1.76. The average market price for the ordinary shares during the year was $2.77. The tax rate is 35%. What is the diluted EPS as of Watered Down Ltd 30 June 20X5? a. 0.2045 b. 0.1700 c. 0.1988 d. 0.2058 e. 0.2155 f. 0.2548