Example: Acme Inc. reported a net income of $2,500,000 over the year. During the year its weighted average number of common shares outstanding was 1,000,000. Acme also had 25,000 convertible preferred shares outstanding on which it paid a dividend of $7 per share. Each of these shares are convertible intn 2 shares nf common stock. Calculate basic EPS and diluted EPS for Acme for the year