Maxwell Corporation had $100,000$ shares of common stock and $10,000$ shares of $8\%,$ $$100$ par convertible preferred stock outstanding during the year. Net income for the year was $$400,000$ and dividends were paid to both common and preferred shareholders. Maxwell's effective tax rate is $25\%.$ What is Maxwell's basic EPS?

A$.$ $$3\mathrm{.}20$

B$.$ $$4\mathrm{.}00$

C$.$ $$3\mathrm{.}40$

D$.$ Cannot be determined

Malinois Corporation had $100,000$ shares of common stock and $10,000$ shares of $8\%,$ $$100$ par convertible preferred stock outstanding during the year. Net income for the year was $$400,000$ and dividends were paid to both common and preferred shareholders. Malinois' effective tax rate is $25\%.$ Each share of preferred stock is convertible into five shares of common stock. What is Malinois' diluted EPS $($rounded$)?$

A$.$ $$2\mathrm{.}67$

B$.$ $$2\mathrm{.}13$

C$.$ $$3\mathrm{.}63$

D$.$ Cannot be determined