Problem 19-13 EPS; nonconvertible preferred stock: treasury shares; shares sold; stock dividend: options: convertible bonds, contingently issuable shares (L019-4, 19-5, 19-6, 19-7, 19-8, 19-9, 19-10, 19-11] On December 31, 2015, Duw Steel Corporation had 750,000 shares of common stock and 45,000 shares of 7%, nonoumulative, nonconvenable preferred stock Issued and outstanding. Dow issued a 4% common slock dividend on May 15 and paid cash dividends of 5550,000 and 584,000 to common and preferred Sharcholders, respectively, on December 16, 2016. On February 28, 2016, Dow sold 60.000 common shares. Also, as a part of a 2015 agreement for the acquisition of Merril Cable Company, another 27,000 shares (already adjusted for the stock divi cond) are to be d to former Meril shareholders on December 31, 2017, if Merrile 2017 net income is at least $650.000. In 2016, Merrill's net income was $790,000 In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. Dow's nel income for the year ended December 31, 2018, was $2.880,000. The income tax rate is 40%. As part of an incentive compensation plan, Dow granted incentivestock options to division managers at December 31 of the current and each of the previous two years. Each option permits its holder to buy one share of common stock at an excercise price equal to market value at the date of grant and can be exercised one year from that date. Information concerning the number of options granted and common share prices follow Date Granted Share Price December 31, 2014 December 31, 2015 December 31, 2018 Options Granted Adjusted for the stock dividend) 22.000 17 000 20.500 The market price of the common stock verond $44 per here during 2016 On July 12, 2014, Dow issued $700,000 of convertible 10% bonds at face value. Each $1,000 bord is convertible into 40 common than usted for the stock dividend) Required: Compule Dow's basic and diluted earrings per share for the year ended December 31, 2016 (Enter your answers in thousands.) Numerator Denominator - Earnings per share Dow's basic Dewa diluted