Assume that the following data relative to Metro Co. for 20x1 is available:

Net Income (40% tax rate): $3,200,000

Transactions in common shares

1/1Beginning number1,000,000 shares

3/1Purchase of treasury shares(60,000)

6/1Stock split, 3 for 1

9% cumulative convertible preferred stock

Issued (in 20x0) at par ($1,000,000), convertible into 200,000 shares of common stock.

Stock options

No stock option was exercised in 20x1, but exercisable at the option price of $35 per share. If exercised, 60,000 common shares would be issued.

Average market price in 20x1 is $40.

Compute the basic and diluted EPS for 20x1.