Hi,
I have to work out the dilutive earnings per share for the below info and am confusing myself on what to include.

I have 5,000,000 ordinary shares
2,000,000 non-participating 8% preference shares
Net profit of $3,200,000

the company has issued 250,000 10%convertable notes - face value of $2
these are convertible into $1 ordinary share per convertable note.

Have also issued 100,000 share options to CEO - excerisable at $2 per option


I did like this - can anyone tell me if im on the right track?

Basic earnings per share
3200000/ 5000000=.64

Dilutive EPS


so :4,010,000 / 7,350,000 = .54
??????