An analyst gathers the following information about a company for the fiscal year ended 31 December:
Net income: $1,200,000
Common shares outstanding on 1 January: 1,000,000
Common shares issued on 1 April: 100,000
Common shares outstanding on 31 December: 1,100,000
Face value of convertible bonds outstanding: $2,000,000
Coupon rate on convertible bonds: 8%
Tax rate: 30%
If the bonds are convertible into 200,000 common shares and there are no other potentially dilutive securities outstanding, the company's diluted earnings per share (EPS) is closest to:
