In order to calculate EPS for the current year, Ajax Corporation has collected the following information about its common stock:

Outstanding shares - beginning of the year (January 1)	1,000,000
Additional shares issued on April 1	200,000
15% stock dividend declared and distributed on July 1
Shares reacquired on October 1	100,000
Net income for the year	$3,000,000
Dividends declared and paid for noncumulative, nonconvertible preferred stock	$200,000

Calculate Ajaxs basic EPS.

Ajaxs capital structure includes convertible bonds with a face value of $4,000,000 (issued at par) that pay 5% annual interest. These bonds are convertible into 500,000 common shares. Ajaxs effective tax rate is 20%. Ajax has determined that the convertible bonds are dilutive. Calculate Ajaxs diluted EPS.