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4. During 20X6, ZZZ reported net income of $375615 and had 200,000 shares of common stock outstanding for the entire year. ZZZ had 4500
4. During 20X6, ZZZ reported net income of $375615 and had 200,000 shares of common stock outstanding for the entire year. ZZZ had 4500 shares of 10%, $100 par convertible preferred stock, convertible into 15 shares each, outstanding for the entire year. ZZZ also had 1150, 7%, $1,050 par value convertible bonds, convertible into 50 shares each, outstanding for the entire year. Finally, ZZZ had 15000 stock options outstanding during the year. Each option is convertible into one share of stock at $33 per share. The average market price of the stock for the year was $40. What are ZZZ's basic and diluted EPS? (Assume a 35% tax rate.)
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