Calculating Earnings per Share During the year, Laurel Company had the following securities outstanding: 1. 245,000 shares of common stock with an average market price of $25 per share. 2. 10% convertible preferred, which had been sold at its par value of $100. The preferred stock is convertible into three shares of common stock and 2,500 preferred shares are currently outstanding. During the year, Laurel earned net income after income taxes of $2.8 million. (a) Calculate the basic earnings per share for Laurel Company. HINT: For basic EPS, remember to reduce net income by the preferred stock dividend. Round answer two decimal places. $ 0 (b) Calculate the diluted earnings per share for Laurel Company for the current year. HINT: For diluted EPS, remember to include additional shares (converted to common stock) in total number of shares outstanding. Round to two decimal places. $ 0 Check