5. Heights Co. has asked you to consult on the effects of the following on the EPS calculation. a. Heights issued 15,000 stock options exchangeable into common shares on a one for one basis. The exercise price of the option is $ 10. and the average market price is $ 20 for the year. Calculate the number of shares to account for the stock options. b. Heights has $ 1,500,000 of convertible bonds outstanding. They pay interest of $ 38,000 and upon conversion would add 45,000 shares to the weighted average shares outstanding. Assume that net income is $ 230,000,weighted average shares outstanding was 100,000 and preferred dividends are $ 25,000, what would be the reported diluted earnings per share? C. Lowes, a subsidiary of Heights, has cumulative convertible preferred shares that pay a dividend of $ 12,000 and convert into 15,000 common shares. Assume net income of $ 125,000, common shares outstanding of 60,000 what is the diluted earnings per share?