Question - Wonderful Inc. issued to its existing common stockholders 2000 warrants. Each warrant entitles the stockholder to purchase 3 shares of common stock at a price of $4 each. The common stock of the company is selling in the stock exchange at $6 each. If Wonderful has 20,000 shares of common stock outstanding throughout the year and its Net Income is $8,000 after paying the preferred dividends, what will be the dilutive EPS of Wonderful incorporation under treasury stock method? Round your answer to two decimal points.
$4
$0.40
$0.30
$0.36