The following information relates to the Zipo Company. Compute both basic and diluted EPS for Zipo Company. Hint: solving this problem is very similar to the steps used to solve the \"comprehensive example" problem in the Appendix to the chapter. All supporting calculations are to be turned in with the solution. Student groups are encouraged to meet in the classroom during the scheduled class time to work together. Each student is to turn in hisfher solution. 1. 2. 3. 4. 5. 6. 7'. The Company's net income for the year was $50,000. The weighted-average number of common shares outstanding is 10,000 shares. The income tax rate is a flat 40%. Series A Options to purchase 1,000 shares of common stock at $8 per share were outstanding all year. Series B Options to purchase 2,000 shares of common stock at $13 per share were outstanding all year. The average market price of common stock during the year was $10. The Company had two hundred T% convertible bonds outstanding the entire year. Each $1,000 bond converts into 40 common shares. The bonds had been issued at par and no bonds were converted during the year. The Company had 1,000 shares of $100 par value, 4% convertible cumulative preferred stock issued and outstanding the entire year. Each preferred share is convertible into 1.25 shares of common stock. The preferred stock was issued at par value and no shares were converted during the year. The Company had 1,000 shares of $100 par value, 6% non-cumulative, nonconvertible preferred stock issued and outstanding the entire year. The preferred stock was issued at par value. 10.All required preferred dividends were declared and paid during the year as well as a $2 per share dividend to the common stock