A firm reported Net Income of $500,000. They have 100,000 shares of common stock with a price of $60 per share and 20,000 shares of preferred stock that pays a dividend of $6 per year. They have 2,000 convertible bonds with a face value of $1,000 and a 9% coupon rate. Each bond can be converted into 25 shares of stock. They have also issued 10,000 warrants that allows the owner to purchase stock for $50 per share. The tax rate is 25%. What is the difference between their Basic EPS and their fully diluted EPS (you have to solve for both).

a) $.23 b) $.55 c) $1.22 d) $1.83