During 2021, the Minnesota Design Company had the following information regarding its capital structure:

70,000 stock options with an exercise price of $45. The stock options were issued during 2018.

10,000 warrants with an exercise price of $40. Each warrant is convertible into two shares of common stock. The warrants were issued during 2019.

500,000 shares of common stock with a par value of $1. No stock was purchased or issued during 2021.

3,000 5% convertible bonds. Each $100 bond can be converted into 10 shares of common stock. The bonds were issued on January 1, 2019, and can be converted at any time after December 31, 2020.

Minnesota Design reported net income of $670,000 during 2021 and paid dividends on preferred stock of $20,000. The tax rate during 2021 is 40%. The average market price of Minnesota Designs stock during 2021 was $80.

REQUIRED: 1. Compute basic EPS for Minnesota Design for 2021. 2. Determine the dilution effect for each convertible security. 3. Compute diluted EPS for Daktronics for 2021.