Sabby Pharmaceutical Industries, a public company has provided selected financial data for the fiscal year ended December 31, 2019.

Long-term debt

5% convertible bonds payable due 2021 (note 1) $3,000,000

Shareholders' equity

$2 cumulative Preferred Shares, no par value,

200,000 shares authorized, 40,000 shares issued $1,800,000

Common Shares, unlimited shares authorized, 1,095,000 shares

outstanding at December 31, 2019 (see below

-part a of required for details) $3,500,000

Notes:

1. The 5% bond was issued at face value on January 1, 2019. They are convertible into common shares at 30 shares per $1,000 bond.
2. All preferred dividends were declared and paid in fiscal year 2019.
3. Stock options were sold for $400,000. They provide the holders with the right to purchase 25,000 shares of common stock at a price of $15 per share. The average market price per common share was $18 in 2019

4. Net income for fiscal year 2019 was $1,720,000.

REQUIRED:

a. On January 1,2019, Sabby had 300,000 common shares outstanding. It had the following transactions in 2019 that affected common shares:

February 1	Issued 100,000 common shares
April 1	Issued a 30% stock dividend
July 1	Issued a 2 for 1 stock split
November 1	Issued 55,000 common shares

Calculate Weighted Average Common shares (WACS) with the above information.

(5 marks)

b. For 2019, calculate Sabby's Basic EPS. (4 marks)

c. For 2019, calculate Sabbys Dilutive EPS. Assume a tax rate of 35%.

Show all your calculations. (6 marks)