On December 31, 2014, Iron Eagle Company has: $150 million in net income (after preferred dividends) 20 million basic weighted average shares outstanding 5M stock options (assume 0$ exercise price) $100 million convertible preferred stock, convertible into 2 million shares and paying a 10% dividend Assuming conversion of the preferred stock and the exercise of all 5M stock options for the purpose of calculating diluted EPS, calculate Basic EPS and Diluted EPS using the information in the bullets above.

$7.50 basic; $5.56 diluted

$7.50 basic; $5.93 diluted

$7.00 basic; $5.19 diluted

$7.00 basic; $5.60 diluted