XYZ Company XYZ, a public company, is required to disclose earnings per share information in its financial statements for the year ended December 31, 20X7. The facts about XYZ's situation are as follows:

At the beginning of fiscal 20X7, 450,000 ordinary shares, issued for $5.75 million, were outstanding. The authorized number of ordinary shares is 1 million. On January 1, 20X7, 50,000 10% cumulative preferred shares were also outstanding. They had been issued for $500,000.

On September 30, 20X7, XYZ issued 100,000 ordinary shares for $1.5 million cash.

On January 15, 20X8, XYZ made a private share placement of 25,000 ordinary shares, raising $350,000 cash.

XYZ reported net income of $2.5 million for the year ended December 31, 20X7.

Managers of XYZ hold options to purchase 20,000 ordinary shares of XYZ at a price of $11.50 per share. The options expire on July 31, 20X10.

At January 1, 20X7, XYZ had outstanding $1 million of 8% convertible bonds ($1,000 face value), with interest payable on June 30 and December 31 of each year. Each bond is convertible into 65 ordinary shares at the option of the holder, before December 31, 20X12. On June 30, 20X7, $400,000 of the bonds were converted.

XYZ has an effective tax rate of 40% and has an average after-tax rate of return of 10%. The average market price in 20X7 for XYZ's ordinary shares was $13.

Required: Calculate the basic and diluted earnings per share figures for 20X7.