You have been provided with the following information for Company 123 for the year 2020: Net income $ 4,800,000 Number of common shares outstanding 1,200,000 shares 10%, cumulative preferred shares, convertible into 120,000 common shares $ 1,800,000 8% convertible bonds; convertible into 100,000 common shares $ 9,500,000 360,000 call options exercisable at $ 26 per share Additional information 1. The common and preferred shares and the convertible bonds were outstanding from the beginning of the year. 2. In 2020, a $ 1,500,000 dividend was declared and distributed; however, no dividends were declared in 2019. 3. The average market price of the common shares in 2020 was $ 0. The stock price was $ 27 on January 1, 2020, and $ 5 on December 31, 2020. 4. The convertible bonds were sold at par. 5. The income tax rate for 2020 is 40%. a) Calculate basic earnings per share b) Calculate diluted earnings per share c) Why is earnings per share useful? What is the additional importance of reporting diluted earnings per share