Rockland Corporation earned net income of $300,000 in 2011 and had 100,000 common shares outstanding throughout the year. Also outstanding all year was $800,000 of 10% bonds that are convertible into 16,000 common shares. Rockland's tax rate is 40%. Calculate Rockland's 2011 diluted earnings per share. For simplicity, ignore the IFRS requirement to record the debt and equity components of the bonds separately.
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