Company A issued $ 4,000,000 of 10 year 7% callable convertible subordinated debentures on January 1, 2019.

The debentures have a face value of $ 1,000, with interest payable annually. The current conversion ratio is 14:1, and in two years it will increase to 18:1. At the date of issue, the bonds were sold at 98 to yield a 7.29 effective

interest rate.

Bond discount is amortized using the effective interest rate. The effective tax rate is 35%.

Net income in 2019 was $ 9,500,000.

There were 3,000,000 shares outstanding for the year

Note: for this example ignore the debt and equity component requirements for the convertible debt.

Required:

What is basic EPS for 2019? What is diluted EPS for 2019?