Assume a company had net income of $20,000 and 8,000 common shares were outstanding the entire year.

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Assume a company had net income of $20,000 and 8,000 common shares were outstanding the entire year. Also assume there were 2 convertible securities outstanding the entire year: Dilution testing showed the following changes in the EPS numerator and denominator for two convertible securities if they had been converted: Earnings Available to Common Shareholders Weighted Average Common Shares #1 $8,000 6,000 #2 12,000 5,000 What is the diluted EPS? (Rounded to the nearest cent) Group of answer choices

$2.00

$2.50

$2.40

$2.11