How do I calculate diluted eps for the problem below?
3. (1886) The following information pertains to Sunrise Inc. for the year ended December 31, 2006:
January 1, 2006 10,000 stock options outstanding
60,000 shares of common stock outstanding
5,000 shares of convertible preferred stock outstanding; par value $10, 8 percent dividend
100 convertible 10 percent bonds issued at a par value of $1,000
March 31, 2006 Sold 2,400 additional common shares
July 1, 2006 A 50 percent stock dividend was distributed
Each share of preferred stock is convertible into one share of common stock, and each bond is convertible into 25 shares of common stock.
Sunrise Inc. reported net income of $250,000 and has a 30 percent income tax rate. The option price was $20, and the stock prices at various dates were
Preferred Common
January 1 $20 $18
Average 22 25
Year-end 24 30


Required:
1. Calculate Sunrise Inc.’s diluted EPS.