On January 1, 2027, Ajax Corporation had 5 million shares of common stock, issued and outstanding. On April 1, 2027 Ajax issued an additional 1 million shares of common stock. Ajax also has $20 million face value, 4.25% convertible bonds outstanding for the entire year. The bonds are convertible into 1 million common shares. Ajax has a tax rate of 20% and net income of $10 million in 2027. What is Ajaxs basic and diluted earnings per share for 2027, respectively?

Question 10 options:

	$2.00; $1.58
	$1.74; $1.58
	$2.00; $1.78
	$1.74; 1.61