Assume a company has the following: - net income of $1,750,000 - an average of 500,000 shares of common stock outstanding - 20,000 shares of convertible preferred outstanding - no other potentially dilutive securities - Each share of preferred pays a dividend of $10 per share, and each is convertible into five shares of the company's common stock. - An effective tax rate is 30% Calculate the company's basic and diluted EPS