On 12/31/99, Morgan Corporation's capital structure is as follows:
Common Stock outstanding 200,000
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Nonconvertible, $100 Par, 6% Preferred Stock 37,700 Shares
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8.00 %, $1,000 Convertible bonds $1,500,000
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Stock options to purchase 33,000 shares of common at $30.00 a share.
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Average market price of common stock during 2000 was $39
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The following events occurred in 2000:
On 9/1/00, Morgan sold 283,000 additional shares of common stock.
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Net income for the year was $1,375,000, after taxes.
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The 8.00% convertible bonds are convertible into 80 shares of common stock for each $1,000 bond.
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The tax rate for 2000 is 25%
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What is the diluted EPS for 2000?