Computing Diluted EPS: Stock Options Rand Inc. had net income of $800,000. During the year, 220,000 shares were outstanding on average and Rand's common stock sold at an average market price of $50 per share. In addition, Rand had 22,000 stock options outstanding to purchase a total of 22,000 common shares at $25 for each option exercised. Required a. Compute basic EPS. b. Compute diluted EPS. Note: Enter the earnings per share amounts in dollars and cents, rounded to the nearest penny