Calculate the basic EPS for a company with net income of $180,000 and 20,000 common shares outstanding. If the company has 5,000 convertible preferred shares, each convertible into 2 common shares, calculate the diluted EPS. Discuss the importance of EPS in evaluating a company’s profitability and its relevance to investors and analysts. Analyze the impact of dilution on EPS and how it reflects the potential effects of convertible securities, stock options, and warrants on shareholder value. Consider the strategic implications of managing EPS and dilution, including the timing of equity issuances, share buybacks, and the structuring of convertible securities. Discuss how EPS and diluted EPS can be used in comparative analysis, benchmarking, and performance evaluation. Explain the importance of transparent disclosure and communication of EPS and dilution effects to stakeholders.