Table B below contains data related to Nectarine Ltd.'s capitalization at January 1, 2018.

Nectarine Ltd. is a public company trading on the Toronto stock exchange.

TABLE B

NECTARINE LTD. CAPITAL STRUCTURE AS AT JANUARY 1, 2018

$60 Million, 15 year convertible debenture issued at par; interest at 3% per annum payable

annually 31st December. Each $2,000 debenture convertible into 60 common shares. 60,000,000

Series T Preferred, no-par value, $2.50 dividend, cumulative, non-participating;

600,000 shares issued and outstanding. Each share convertible into four common shares. 1,200,000

Common, no-par value, 6,000,000 shares issued and outstanding 28,800,000

824,000 stock options, entitling option holders to purchase 1 common shares for each 2

options held at $2 per share; options exercisable beginning Jan. 1, 2022; 400,000

Retained Earnings 47,200,000

Additional Information :

Income Tax Rate for 2018: 40%

Average common share price in 2018 - $8.00.

A 2017 agreement with corporate executives stipulates that they will be awarded 1,000,000 common shares if

the company's share price is trading at a minimum of $8.50 at December 31, 2020.

The common share price at December 31, 2018 is $9.00.

The following additional information is available from the company's 2018 records.

All convertible debentures, series T preferred shares and stock options remain outstanding in the financial statements as at December 31, 2018.

Basic earnings per share for the year-ended December 31, 2018 has been determined at $.80 (Net Profit Attributable to Ordinary Shareholders $6,720,000; Weighted Average Ordinary Shares 8,400,000)

REQUIRED:

Calculate Nectarine Ltd.'s diluted EPS for the year-ended December 31, 2018.

• Provide detailed support of all calculations