Online Network Inc. has a net income of $540,000 in the current fiscal year. There are 100,000 shares of common stock outstanding along with convertible bonds, which have a total face value of $1.5 million. The $1.5 million is represented by 1,500 different $1,000 bonds. Each $1,000 bond pays 6 percent interest. The conversion ratio is 20. The firm is in a 30 percent tax bracket.

a. Compute basic earnings per share. (Do not round intermediate calculations and round your answer to 2 decimal places.)

Basic earnings per share

b. Compute diluted earnings per share. (Do not round intermediate calculations and round your answer to 2 decimal places.)

Diluted earnings per share