On January 1, 2007, UMB Corporation had 1,000,000 shares of common stock outstanding. On March 1, the corporation issued 150,000 new shares to raise additional capital. On July 1, the corporation declared and issued a 2-for-1 stock split. On October 1, the corporation purchased on the market 600,000 of its own outstanding shares. The tax rate is 40%. Additional information: Net Income $3,100,000 The following three securities were issued prior to 2007. 8% Cumulative Convertible Preferred Stock Sold at par, convertible into 200,000 shares of common $1,000,000 Stock Options Exercisable at the option price of $25 per share. Average market price in 2007, $30 60,000 shares 8% Convertible Bonds Sold 2,000 bonds at par. Each $1,000 bond is convertible into 25 shares of common stock. $2,000,000 Required: 1. Compute the weighted average number of shares outstanding during the year. 2. Compute the basic earnings per share for 2007. (Round to the nearest penny.) 3. Compute the diluted earnings per share for 2007. (Round to the nearest penny.) You have to show the proper intermediate steps to get full credit.