b). Ace Company's net income for the year is $4 million and the number of common shares outstanding is 3 million (there is no change in shares outstanding duri options and warrants outstanding to purchase I Required million common shares at $15 per sha re. erage market value of the common share is $20, year-end price is $25, interest rate 6%, and the tax rate is 50%, then compute both basic and diluted EPS. on borrowings is i). Do the same computations as in a assuming net income for the year is only S3 million, the average market value per common share is $18, and year-end price is $20 per share (13 marks)