Zoe Corp has 1,500,000 shares of $10 par, 4% cumulative preferred stock outstanding. Each share is convertible into 1/2 of a share of common stock. The shares were outstanding all year, and Tipsy's tax rate is 30%. What is the effect on EPS of this preferred stock for dilutive EPS? (i.e. As in-class problems, I am asking for the P/S EPS only).

Select one:

$0.40 per share

$0.08 per share

$1.14 per share

$0.80 per share

$0.56 per share