Given the following for the Austin Company:
Net Income: $300,000
Tax Rate: 30%
Closing Market Price per common share: $32
Average Market Price per common share: $30
Common shares outstanding (entire year): 200,000
The following Capital Structure items existed for the entire year:
1. 6%, Cumulative Preferred Stock (Total par $200,000), Convertible to 20,000 common shares.
2. Stock Options to purchase 12,000 Common Shares at $31 per share.
In the computation of Diluted EPS, the denominator is: