Question: Last year, Wahlen Corporation reported basic and diluted EPS in an amount less than basic EPS due to outstanding stock options. Those options were exercised

Last year, Wahlen Corporation reported basic and diluted EPS in an

Last year, Wahlen Corporation reported basic and diluted EPS in an amount less than basic EPS due to outstanding stock options. Those options were exercised on January 1 of the current year. During the current year, Wahlen Corporation had 6.0 milion shares of common stock outstanding. Two thousand six hundred 10% convertible bonds, each with $1,000 face value, were issued at face amount of the beginning of the year. Wahlen reported net income of $2.6 million for the year. Each bond is convertible into 10 shares of common stock. The tax rate is 25%. What is diluted EPS (rounded)? Note: Round your answer to 2 decimal places. Muitiple Choice $0.41 5043 $039 $0.48

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