Question #1. (14 marks) JSP Corporation reported basic eps of $3.00 and diluted eps of ?? for 20016. The company's eps calculations are shown next: [JSP has a tax rate of 25%] Numerator($) Den ominator NI $3,500,000 500,000 C/S Div on 10% Preferred Stock Weighted-average outstanding Basic eps = $3.00 1,000,000 Stock option dilution 10,000 Convertible debt 240,000 240,000 Required: dilution a. What is the interest rate and C/S conversion rate for the $4 million par of the convertible debt? A certificate of debt has a face value of $1,000. (4 marks) b. There were 50,000 shares under stock option during the year, and the average exercise price was $20 per share. What was the average market price of the company's C/S during 2016. (4 marks) c. Compute the diluted eps. (3 decimal places) (6 marks)