II. Assume that the following data relative to Metro Co. for 20x1 is available: Net Income (40% tax rate): $3,200,000 Transactions in common shares 1/1 Beginning number 1,000,000 shares 3/1 Purchase of treasury shares (60,000) shares 6/1 Stock split, 3 for 1 9% cumulative convertible preferred stock Sold (in 20x0) at par, convertible into 200,000 shares of common stock $1,000,000 Stock options No stock option was exercised in 20x1, but exercisable at the option price of 535 per share. If exercise, 60,000 common shares would be issued. Average market price in 20x1 is $40. Compute the basic and diluted EPS for 20x1