Martinez Inc. had 503,000 common shares outstanding for the entire scal year ended August 31. 2020. Martinez has 103,000 outstanding $2 cumulative, no-par value preferred shares. All shares were outstanding for the full year. Options were written at the start of the scal year to purchase 31,000 common shares at $16 per share. The average market price of Martinez's common shares during the year ended August 31, 2020 was $25 per share.The options expire in 2029, and none were actually exercised during the current year. Also outstanding for the entire year was a 3% bond with a face value of $5,500,000, convertible to 125,000 common shares. Martinez Incfs net income for the year was $2,695,350. and the income tax rate for the fiscal year was 40%. {For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately). Calculate the income effect of the dividends on preferred shares. Dividends on preferred shares $ l eTextbook and Media Calculate Martinez |nc.'s basic earnings per share for the year ended August 31, 2020. {Round mrtazdadmipiaces, 2.3. 1525} Basic EPS $ l Calculate the after-tax interest paid on the 8% bonds. After-tax interest on bonds converted LA eTextbook and Media Determine an incremental per share effect for 8% bonds. (Round earnings per share to 2 decimal places, e.g. 15.25.) Incremental Incremental Potentially dilutive security Numerator Effect Denominator Effect EPS 8% Bonds tA tACalculate the proceeds from assumed exercise of 31,000 options. Proceeds from exercise of options tA Calculate the incremental shares oustanding upon the exercise of options. The incremental shares oustanding upon the exercise of options eTextbook and Media Rank the potentially dilutive securities from most dilutive to least dilutive. 8% bonds OptionsCalculate Martinez Inc.'s diluted earnings per share for the year ended August 31, 2020. (Round calculations of EPS to 3 decimal places, e.g. $3.545 and provide final answer to 2 decimal places, e.g. 15.25.) Numerator Denominator EPS Basic EPS $ $ Sub Total $ v $ $ Diluted EPS