. On December 31, 2019, Hawk Company presented the following data.

• Net income after income tax and interest expenses $2,400,000.
• Common stock (C/S)with $100 par:

# of shares outstanding as of 1/1/2019 600,000

# of shares issued for cash on 7/1/2019 400,000

# of shares reacquired on 10/1/2019 (Tresury stocks) 120,000

• 200,000 shares of 3% Convertible Preferred stock (P/S) with $50/share par value.

Conversion ratio to C/S = 2 for 1; i.e., two shares of P/S will become one share of C/S

• The income tax rate is 30%.
• Hawk issued 3,000 shares of $1,000 par value, 2%, 5 year convertible bonds for $1,000 per share on January 1, 2019. The interests are payable annually at the end of each year. Each $1,000 bond can be converted to 10 shares of common stock within five years from 1/1/2019.
• None of these convertible securities have been converted to date.
• Hawk granted call options to purchase 10,000 shares of common stock for $80/share to its managers on 1/1/2019 when the option value were $5,000. None of these options have been exercised to date. The average market price of common stock was $120/share in 2019.

Instructions:

1. Compute Simple EPS for 2019.
2. Compute Diluted EPS for 2019.