Suppose you have the following information: Net Income: $2,000,000 Average shares outstanding: 750,000 shares Convertible 5% Debt: $70,000 Number of shares that the Convertible Debt created if converted: 35,000 Convertible Preferred Stock that has a $3 dividend: 30,000 shares 1 Convertible Preferred Share can be exchanged for 2 Common shares An effective tax rate of: 30% What is the firm's basic and diluted EPS? Basic EPS = 2.55 ; Diluted EPS = 2.47 Basic EPS = 2.55; Diluted EPS = 2.37 Basic EPS =2.45 ; Diluted EPS = 2.26 Basic EPS = 2.66 ; Diluted EPS = 2.26