The following data are presented by Webb Corp. for calendar 2023: Net income................................................................................................................. $4,500,000 10%, cumulative preferred shares, convertible into 120,000 common shares........... $1,600,000 8% convertible bonds; convertible into 90,000 common shares................................ $7,500,000 360,000 call options exercisable at $25 per share Additional information 1. The preferred shares and the convertible bonds were outstanding from the beginning of the year. The conversion rates have NOT been adjusted for the stock split. 2. In 2023, a $500,000 dividend was declared and distributed; however, no dividends were declared in 2022. 3. The average market price of the common shares in 2023 was $30. The stock price was $27 on January 1, 2023, and $35 on December 31, 2023. 4. The convertible bonds were sold at par. 5. The income tax rate for 2023 is 30%. 6. The transactions in common shares for the year are as follows: Transactions in Common Shares Change Cumulative Jan 1 beginning...................................... 1,000,000 Mar 1 purchase of treasury shares.......... (60,000) 940,000 Jun 1 shares split 2 for 1........................ 940,000 1,880,000 Nov 1 issuance of new shares................. 120,000 2,000,000

Instructions: (Show all calculations) a) Determine the weighted average number of common shares. b) Calculate basic EPS. c) Calculate diluted EPS. d) Briefly discuss the usefulness of the EPS measure in general. What is the additional importance of reporting diluted EPS?