Diluted EPS again

NI = 500M Common Shares (whole year) = 100M Conv Prf shares (whole year) = 5M Outstanding Warrants (whole year) = 10M Each prf share pays $4 div and is convertible into 3 Common Shares Each Warrant is conv into 1 Common Share at $25 per share Avg stk price $50 and company did not declare any dividends What’s Diluted EPS? 1) 4 2) 4.2 3) 4.8 Schweser says correct answer is 4. Can somebody explain why? Sorry for posting it at the eleventh hour.

Check this out http://www.analystforum.com/phorums/read.php?11,1084891,1086621#msg-1086621

great…thanks, much help