Hominem Inc. has $100,000$ common shares outstanding. Earnings from continuing operations amounted to $$1,700,000($after tax$)$ for the year ended $31$ December $20$X$4.$ Hominem$$s income tax rate is $25\%.$ The company had no discontinued operations. At the end of $20$X$4,$ the market price of the company$$s common shares was $$37.$ Hominem had these additional components in its capital structure at the end of the year:

$25,000$ cumulative preferred shares outstanding since $20$X$2$; each share is entitled to an annual dividend of $$10$ per share and is convertible into five shares of common after $30$ June $20$X$9.$

$4\%$ debentures amounting to $$700,000$ were issued on $1$ January $20$X$4.$ On this issue date, the bonds were recorded at $$625,000.$ The debentures are convertible into $10$ shares per $$1,000.$ On $1$ January $20$X$4,$ similar bonds with no conversion options had a market yield of $10\%.$ Interest is payable annually.

Outstanding options permitting the holder to buy $5,000$ common shares in $20$X$6$ or later for $$45$ per share.

Required:

$1.$ Compute basic EPS. $($Do not round intermediate calculations and round your answer to $2$ decimal places.$)$

$2.$ Compute diluted EPS, using a cascade if appropriate. $($Do not round intermediate calculations and round your answer to $2$ decimal places.$)$