Zander Company Limited had ordinary share capital of $1,000,000 consisting of $0.25 par value shares. On April 1, 2019 the company issued 800,000 additional ordinary shares at the current market price of $2 per share. Below is an extract of the companys income statement for the year ended December 31, 2019: Profits before taxes $5,000,000 Taxes $1,250,000 Profits after taxes $3,750,000 Other relevant information to the company for the year ended December 31, 2019: Ordinary dividends paid $500,000 Ordinary dividends declared $500,000 Preference dividends paid $250,000 Preference dividends declared $500,000

Required: a. Determine the average ordinary shares outstanding b. Calculate the EPS for 2019