The following information is available for OPQ Inc.

OPQs net income for the year ended December 31, 2013 was $5,800,000.

OPQs tax rate is 30%.

There were 1,000,000 common shares outstanding on December 31, 2012. The average market price for the year was $30.00 per share.

On March 1, 2013 OPQ issued (sold) $5 million of common shares. On the date of issuance, each common share had a $25 value.

On September 1, 2013 OPQ declared a 3 for 2 stock split on the outstanding common shares. Prior to the split the each common shares had a $40 value. All of the equity instruments outstanding on the date of the split were adjusted for this split.

On January 1, 2013 OPQ issued (sold) $6 million of Class A preferred shares. The shares carry a 12% cumulative dividend and are callable by OPQ until January 1, 2016 after which the shares lose their call feature and the dividend rate on the shares doubles.

In 2012, OPQ issued (sold) $2 million of 9%, cumulative, convertible Class B preferred shares. The preferred shares are convertible into 100,000 common shares (already adjusted for the split mentioned above).

In 2011, OPQ issued (sold) $3 million of 8% convertible bonds. The bonds are convertible into 40,000 common shares (already adjusted for the split mentioned above). The book value of the bonds on January 1, 2014 was $3 million. Interest is payable annually on every January 1.

Stock options were issued to senior executives in 2010. The options entitle the executives to purchase 120,000 common shares at an exercise price of $15.00 each (already adjusted for the split mentioned above). The options were first exercisable on January 1, 2013 and expire on December 31, 2017.

Required: (Show your work)

a) Compute OPQs basic earnings per share for 2013.

b) Compute OPQs diluted earnings per share for 2013.