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Zekany Corporation had 290,000 shares of common stock and 29,000 shares of 5%, $100 par convertible preferred stock outstanding during the year. Net income for the year was $590,000 and dividends were paid to both common and preferred shareholders. Zekany's effective tax rate is 25%.

What is Zekany's basic EPS?

Multiple Choice

$2.03

$1.53

$1.39

$2.53