Teddy Bear Corp. has 30,000 shares of common stock outstandi…

Teddy Bear Corp. has 30,000 shares of common stock outstanding at the end of 2018. Teddy Bear Corp. also has 50, 15-year, 8% convertible bonds, each with face value of $1,000. Each bond is convertible into 40 shares of common stock. During 2018, Teddy Bear Corp. earned a net income of $61,200 after deducting all expenses. The tax rate was 40%. Compute the diluted earnings per share for 2018: