4. The following information was taken from the books and records of Ludwick, Inc.:

Net income € 280,000
\(\bullet\) Capital structure:

a. Convertible \(6\%\) bonds. Each of the 300, €1,000 bonds is convertible into 50 ordinary shares at the present date and for the next 10 years. 300,000
b. €10 par, 200,000 ordinary shares issued and outstanding during the entire year. 2,000,000
c. Share warrants outstanding to buy 16,000 ordinary shares at €20 per share.

Other information:

a. Bonds converted during the year None
b. Income tax rate 30%
c. Convertible debt was outstanding the entire year
d. Average market price per share of common stock during the year €32
e. Warrants were outstanding the entire year
f. Warrants exercised during the year None

Instructions

Compute diluted earnings per share.