27. [Earnings per share and book value per share with more complex capital structure] Isabelle Industries reported the fol- lowing data at December 31, 2001 Common shares outstanding at January 1, 2001 Common shares issued on June 30, 2001 Preferred shares issued on January 1, 2001 50.0 million 20.0 million Par value Divider.d Conversion rate (common shares 4.0 million $5.00 $25.00 2.0 per preferred share) Convertible debt issued on September 30. 2000 $100 millon Interest rate Conversion rate Stock options outstanding for all of 2001 Exercise price Market price of common shares on December 31, 2001 6.5% $10 per share 25.0 million $9.60 $12.00

a. Compute Isabelle's basic earnings per share for 2001.

b. Compute Isabelle's diluted earnings per share for 2001.