4) Kansas Instruments reported $7,000,000 in net income for the current year. The company had $7,000,000 of 9% cumulative, non-convertible preferred stock outstanding all year, and $5,000,000 of 7% convertible bonds. Each bond is convertible into 40 shares of common stock. Common shares outstanding all year were 2,000,000. Required Compute both basic and diluted EPS when the tax rate is 40%. (20 points)