The following data are presented by Quentin Corp. for calendar 2020 $4,500,000 Net income Common shares outstanding, 1,000,000 shares 10%, cumulative preferred shares, convertible into 120,000 common shares 8% convertible bonds, convertible into 105,000 common shares 360 000 call options exercisable at $ 25 per share $1,600,000 $7,500,000 2 Additional information 1 The common and preferred shares and the convertible bonds were outstanding from the beginning of the year 2 In 2020, a $ 500,000 dividend was declared and distributed; however, no dividends were declared in 2019 3 The average market price of the common shares in 2020 was S 30. The stock price was $ 27 on January 1, 2020, and $ 35 on December 31, 2020 4 The convertible bonds were sold at par 5 The income tax rate for 2020 is 30%. The enacted tax rate for 2021 is 33% Instructions a) Calculate basic EPS b) Calculate diluted EPS c) Briefly discuss the usefulness of the EPS measure in general. What is the additional importance of reporting diluted EPS