Yellowjacket Corp. has a net income for 2019 of 20. Yellowjacket has 60 shares of common stock issued, 10 of which are treasury shares, and 140 authorized shares.

1. Compute basic EPS assuming Yellowjacket has not issued stock and has not altered its treasury stock during the fiscal year.

2. Now assume that Yellowjacket had a 2-for-1 stock split on July 1^st, increasing their issued shares from 60 to 120 (treasury shares from 10 to 20). Yellowjackets fiscal year-end is December 31^st. Re-compute the basic EPS for Yellowjacket.

3. Now disregard the stock split in part b (i.e., shares issued and outstanding are as indicated in part a). Assume Yellowjacket had 10 convertible bonds with an overall face value of $5,000 since the beginning of the fiscal year the bonds were issued at par with a 3% coupon rate. Yellowjacket has an effective tax rate of 35% and each bond is converted to 2 shares of stock. Compute Yellowjackets diluted EPS.