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Hominem Inc has 100,000 common shares outstanding. Eamings from continuing operations amounted to $1,840,000 (fter tax) for the year ended 31 December 20X4. Hominems income

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Hominem Inc has 100,000 common shares outstanding. Eamings from continuing operations amounted to $1,840,000 (fter tax) for the year ended 31 December 20X4. Hominems income tax rate is 25%, The company had no discontinued operations. At the end of 20X4 the market price o the company's common shares was S44 Hominem had these additional components in its capital structure at the end of the year 21,000 cumulative preferred shares outstanding since 20X2: each share is enbirled to an annual dividend of $15 per share and is convertible into five shares of common after 30 June 20X9 . 4% deben res amounting to S840 000 were issued on 1 January 20X4 this ssue date, the bonds were recorded at S765 00. The debentures are convert ble into 10 shares per S 1 000 On 1 January 20X4 similar bonds with no conversion options had a market yeld of g% Interest is payable annual y Outstanding options permitting the holder to buy 5,000 common shares in 20X6 or later for $52 per share Required: 1. Compute basic EPS. (Do not round intermediate calculations and round your answer to 2 decimal Do not round intermediate calculations and round your answer to 2 decimal places) 2 Compute diuted EPS, using a cescade feppropriete (Do not round intermediate calculations and round your answer to 2 decimal places.)

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