Question 2 (13 points) Naked Corporation needs to calculate its diluted EPS for the year ended December 31, 2020 and has provided you with the following information: 1. There were 180,000 $0.75 cumulative, convertible preferred shares outstanding for the year. Each preferred share is convertible into one common share. 2. Options were granted in 2017 that give the holder the right to purchase 50,000 common shares at $15 per share. The options expire in 2024 and no options were exercised in 2020 3. Options were issued on November 15, 2018 allowing employees to purchase 10,000 common shares at $9 per share. Options are not exercisable until 2021. 4.6.25% convertible debentures, with a par value of $10,000,000 were outstanding for the year. The debentures are convertible at the rate of two shares per $100 bonds. Interest expense related to this debenture was $630,000 and the tax rate is 30% 5.8% convertible debentures, with a par value of $1,125,000 were outstanding for the year The debentures are convertible at the rate of one share per $100 bonds. Interest expense related to this debenture was $78,750 and the tax rate is 30%. Other Information The average market price of the company's common shares during 2020 was 512 per share Basic EPS is $3.84, calculated using Income available to common shareholders $3,168,000 Weighted average outstanding shares 825,000 Required: a. Compute the individual ditutive effect of each dilutive security. Be sure to label each one. b. Calculate diluted EPS based on your results in parta) Show and label your work