Tumaini Ltd makes a net income of sh.10 million and has 1,000,000 common shares issued.Assume that the company has granted 100,000 stock options for its employees.50,000 of which were issued with an exercise price of sh.100 per share and the other 50,000 of which have an exercise price of ksh 500. Each stock option is convertible to common stocks. If the current market price of the stock is to be Ksh 200 per share

Required:

a)Calculate the basic EPS for the company

b)Calculate the Dilluted EPS for the company (10 marks)