In 2016, Fun Company reported $5,000,000 of net income for the current year, after taking out 35% for taxes. At January 1, 2016, Fun Company had 1,000,000 shares of $1 par common stock, On March 1, 2016, the Company issued an additional 600,000 shares of common stock. On June 1, 2016, it declared a 3 for 2 stock split on the common shares. On November 1, 2016, it repurchased 180,000 shares of common stock. The executives have stock options that provide them the opportunity to receive 120,000 shares of stock at an exercise price of $25 per share. The share price has averaged $20 per share over 2016, with a peak price of $30 in late June. In addition to these stock options, Fun Company also has 100,000 shares of $100 par, 5% cumulative preferred stock that can be converted into 500,000 shares of common stock, as well as $20,000,000 in 8% convertible bonds that can be converted into 2,000,000 shares of common stock. No dividends were declared or paid during 2016.

What is Basic EPS?

What is Diluted EPS?