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. Each share of preferred pays a dividend of $10 per share, and each is convertible into 5 shares of the company's common stock. $50,000 of 6% convertible bonds outstanding that are convertible into a total of 10,000 shares An effective tax rate is 30% Calculate the company's basic EPS