Dunbar Company had 10,000,000 shares of $1 par value common stock outstanding at January 1, 2021. On July 1, 2021, the company issued 1,000,000 additional shares of common stock. On August 1, the company issued a 2 for 1 stock split. In addition, at December 31, 2021, 100,000 shares were issuable upon exercise of executive stock options which require a $60 cash payment upon exercise (strike price). The market price is $75 per share.
Net income for 2021 was $50,000,000
There are 200,000 warrants outstanding with a strike price of $85.
Dunbar Company also has two convertible securities. There are 50,000 convertible bonds with a face amount of $1,000, interest rate of 7% and convertible into 30 shares of common stock.
There are 1,000,000 shares of 5%, $100 par value convertible preferred stock, convertible into 5 shares each.
a. Prepare the basic EPS
b. Prepare the diluted EPS
				Outstanding			Weighted
			Trans	Shares	Adjust	Weight	Shares
			Preferred	After	Convertible	After	Stock	Stock
		Basic	Stock	Preferred	Bond	Convertible	Warrant	Option	Diluted
		EPS	Affect	Stock	Affect	Bond	Affect	Affect	EPS