In-class exercise 19-3 Diluted EPS In order to calculate EPS for the current year, Ajax Corporation has collected the following information about its common stock: a) Calculate Ajax's basic EPS. b) Ajax's 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. Ajax's effective tax rate is 20%. Ajax has determined that the convertible bonds are dilutive. Calculate Ajax's diluted EPS