Computing EPS: Convertible Preferred Stock Charter Company earned net income of $19,200 for the year. The company had 5,000 shares of common stock outstanding during the year and 500 shares of noncumulative preferred stock, each convertible into 5 shares of common stock with $10 par value per share. The relevant tax rate is 25%. During the year, Charter Company declared and paid $2,500 in preferred dividends and no common stock dividends. a. Compute basic earnings per share. b. Compute diluted earnings per share. Note: Enter the earnings per share amounts in dollars and cents, rounded to the nearest penny