The capital structure of ABC for the past year is as follows:2,500,000 Shares common stock1,000,000 Shares 5% preferred stock par value EUR 30500,000 4% convertible preferred par value EUR 50, convertible into 500,000shares common10,000,000 Face value 3,5% bond maturing in 10 years convertible to commonstock at 35 shares per EUR 1,000 face value100,000 Warrants for 5 shares each with an exercise price of EUR 22 per shareAdditional Data: The firms marginal tax rate is 35%, and its average tax rate is 32% The firms common stock was valued at EUR 20 per share at year end and had anaverage price of EUR 23 over the year The firms operating earnings were EUR 7,200,000, and it had no interest charges otherthan the outstanding bond The common stock pays a dividend of EUR 0.40 per shareWhat are basic and diluted earnings per share?