Rudyard Corporation had 140,000 shares of common stock and 14,000 shares of 5%, $100 par convertible preferred stock outstanding during the year. Net income for the year was $440,000 and dividends were paid to both common and preferred shareholders. Rudyard's effective tax rate is 25%. What is Rudyard's basic EPS? Multiple Choice $2.40. o $3.64. o $3.14. o $2.64