Monsters Inc. had $700,000 net income for the fiscal year ended on 12/31/2020. On 1/1 2020, there were 200,000 shares of common stock outstanding. On 4/1/2020, 20,000 shares were issued. On 9/1/2020,...

Extracted text: Monsters Inc. had $700,000 net income for the fiscal year ended on 12/31/2020. On 1/1 2020, there were 200,000 shares of common stock outstanding. On 4/1/2020, 20,000 shares were issued. On 9/1/2020, Monsters bought back 30,000 shares as treasury stock. The corporate tax rate is 40%. At the beginning of 2020 there are 30,000 options outstanding to buy common stock at the exercise price of $40 a share; these options were not exercised during 2020. The market price of the common stock averaged $50 during 2020. At the beginning of 2020, there were also 40,000 shares of convertible cumulative preferred stock outstanding. The preferred stock is $100 par per share, pays $3.50 dividend per share per year, and is convertible into three shares of common stock. None of these preferred shares were converted during 2020. Monsters issued $2,000,000 of 8% convertible bonds at par during 2019. Each bond of $1,000 is convertible into 30 shares of common stock. None of the bonds were converted or retired by the end of 2020. [REQUIRED] Compute diluted earnings per share for the fiscal year ended on 12/31/2020. Please round the diluted EPS numbers to the second decimal point (to the nearest penny). Please show the process of calculating diluted EPS.