The following data relate to Wizards Ltd. for the calendar year 2019:

Net income....................................................................................... $3,500,000

Average number of common shares

outstanding during 2019........................................................... 1,000,000shares

10%, cumulative convertible preferred shares:

convertible into 80,000 common shares................................... $1,600,000

8% convertible bonds; convertible into 75,000

common shares.......................................................................... $2,500,000

Stock call options, exercisable at $25 per share............................... 90,000shares

All the convertible securities and stock options were outstanding all year. The average market price of the common shares in 2019 was $30.Marginal income tax for 2019 was 30%.

Instructions

a)Calculate the basic earnings per share

b)Calculate the fully diluted earnings per share.Present you answers in a layering format, and

round all your EPS figures to two decimal points.