Green Corporation has the following capital structure as at December 31, 20x3:

Convertible bonds, 6% $10,346,125

Preferred Shares Series A, 5%, noncumulative 5,000,000

Preferred Shares Series B, $4, cumulative, 80,000 shares issued and outstanding 8,000,000

Contributed Surplus Convertible Bonds 365,000

Contributed Surplus Stock Options 167,000

Common Shares, 2,100,000 shares issued and outstanding 16,700,000

Additional Information

The convertible bonds were issued on December 31, 20x0. Bonds of similar risk yielded 5.6% at the time. The bonds mature on December 31, 20x15 and pay interest on Jun 30 and Dec 31. The face value of the bonds is $10,000,000. Each $1,000 bond is convertible into 40 common shares at the option of the holder.

The net income for the year ended December 31, 20x4 is $3,400,000

No preferred share dividend had been declared since December 31, 20x2. On December 31, 20x4, Green declared a total of $1,200,000 in dividends.

The following common stock transactions took place in 20x4: March 30 Repurchased 30,000 common shares June 30 Issued 200,000 common shares

The Series B preferred shares are convertible into 4 common shares at the option of the holder.

There are two stock option grants outstanding: Series A107: 30,000 options at an exercise price of $15 Series A108: 50,000 options at an exercise price of $28

On February 28, 20x3, Green purchased a subsidiary. One of the conditions of the purchase was the issue of an additional 50,000 common shares on February 28, 20x5 if the cumulative net income of the subsidiary post-acquisition was $1,000,000. This was met on October 31, 20x4. As of December 31, 20x4, the cumulative net income of the subsidiary was $1,300,000 and management believes that there will be no decrease in the cumulative net income of the subsidiary between December 31, 20x4 and February 28, 20x5. The average stock price during the year was $25 The tax rate is 25%

Required a. Calculate the Basic and Diluted EPS for the December 31, 20x4 year end.

b. Assume now that the company declared a 2:1 stock split on April 15, 20x4. Calculate the weighted average number of common shares.