Waves Sound Solutions (WSS) reports the following calculations for basic EPS, for the year ended 31 December 20X4:

Numerator: \(\quad\) Net earnings, \(\$ 18,600,000\), less preferred dividends of \(\$ 1,500,000\)

Denominator: Weighted-average ordinary shares outstanding, \(6,240,000\)

Basic EPS: \(\quad \$ 2.74(\$ 17,100,000 \div 6,240,000)\)

Case A and Case B are independent.

Case A Assume that WSS had 800,000 convertible preferred shares outstanding at the beginning of the year. Each share was entitled to a dividend of \(\$ 2.00\) per year, payable \(\$ .50\) each quarter. Each share is convertible into three common shares. After the third-quarter dividend was paid, 200,000 preferred shares converted to 600,000 common shares. The information above regarding dividends paid and the weighted-average ordinary shares outstanding properly reflects the conversion for the purposes of calculating basic EPS.

Case B Assume instead that WSS had non-convertible preferred shares outstanding in 20X4, on which dividends of \(\$ 1,500,000\) were paid. Also assume that WSS had convertible bonds outstanding at the beginning of 20X4. On 1 November, the entire bond issue was converted to \(2,400,000\) common shares, per the bond agreement. The information above regarding earnings properly reflects interest expense of \(\$ 291,667\) to 1 November. The weighted-average ordinary share figure also reflects the appropriate common shares for the conversion. The tax rate is \(30 \%\).

WSS also had options outstanding at the end of the fiscal year, for 500,000 common shares at an option price of \(\$ 15\). The average common share price was \(\$ 28\) during the period.

Required:
Calculate diluted EPS for Case A and Case B, independently.