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On 12-31-2014, Payton Corporation had 100,000 shares of common stock outstanding and $1,000,000 (face value) of...

On 12-31-2014, Payton Corporation had 100,000 shares of common stock outstanding and $1,000,000 (face value) of convertible bonds payable outstanding, i.e., 1,000 bonds. Each bond has a face value of $1,000. The 1,000 bonds were issued 1-1-1997, at face value, and mature 12-31-2026. The coupon interest rate is 6%. Interest is paid semiannually on 6-30 and 12-31 as long as the bonds are outstanding. Each bond is convertible into 9 shares of common stock at any time prior to maturity. Bondholders who convert during the semiannual period are entitled to a partial coupon payment, for the time they held the bonds, which is paid at the time of conversion. On 4-1-2015, all 1,000 bonds were converted to 9,000 shares of common stock. Payton Corporation had net income of $1,000,000 in 2015. The income tax rate is 40%. What was diluted EPS for Payton Corporation for 2015 ?

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