For the year ending 30 June 2020, Don Ltd reports a net profit after tax of $6.1 million. At the beginning of the financial year Evita Ltd had 2,500,000 fully paid ordinary shares outstanding. Don Ltd also had 1,000,000 partly paid shares. These shares were partly paid to 0.50 cents and had an original issue price of $1. The partly paid shares carry the rights to dividends in proportion to the amount paid relative to the total issue price. They were still partly paid at year end. Don Ltd also has the following securities outstanding: 

• $2.0 million of 10 per cent notes issued on 1 July 2019. The notes have a life of five years and give holders the right to convert the notes into 500,000 fully paid ordinary shares. 

• In 2016, employees were provided with options, at no initial cost, which gave them the right to acquire 750,000 shares at an exercise price of $2.50. The options expire five years after their original issue date. Given the time period to option expiry, the directors believe it is probable that the options will be exercised.

In 2018, Evita Ltd issued 2,000,000 12 per cent, cumulative dividend preference shares. They were issued at $1.00 each and provide the shareholders with the right to convert each two preference shares into one fully paid ordinary share. The company tax rate is 25 per cent. The average market price of the ordinary shares for the financial year is $4.00.

Required

a) Calculate basic earnings per share for Evita Ltd for the year ending 30 June 2020.

b) Calculate diluted earnings per share for Evita Ltd for the year ending 30 June 2020.