Difference in pioneer co fully diluted earnings

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Pioneer Co has issued $300 million in zero-coupon convertible bonds, with a conversion price of $20. Pioneer Co's current share price is $30 per share. Pioneer has an option of using either the if-converted method or the net share settlement method. Pioneer's net income is $500 million and it has 80 million shares outstanding before considering the convertible bonds. What is the difference in Pioneer Co's fully diluted earnings per share between the if-converted method and the net share settlement method? (Round to the nearest two digits)

Reference no: EM133120209

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