Using information from the previous problem, assume the average A-bond yield was 8 percent instead of 10 percent at the time the convertible bonds were issued. All other facts are the same.

a. What are the basic EPS for Hughes Technology?

b. Indicate the value for fully diluted earnings per share.

Data from previous problem:

Mr. John Hailey has $1,000 to invest in the market. He is considering buying 50 shares of the Comet Airlines at $20 per share. His broker suggests that he may wish to consider purchasing warrants instead. The warrants are selling for $5, and each warrant allows him to purchase one share of Comet Airlines common stock at $18 per share.