Assume that the following data relative to Metro Co. for 20x1 is available:
Net Income (30% tax rate): $3,200,000
Transactions in common shares
1/1 beginning number 1,000,000 shares
3/1 Purchase of treasury shares (60,000)
6/1 Stock split, 2 for 1
11/1 Issuance of shares 120,000
9% cumulative convertible preferred stock
Sold (in 20x0) at par, convertible into 200,000 shares of common $1,000,000
Stock options
Exercisable at the option price of $25 per share
Average market price in 20x1 is $30. 60,000 shares
Compute the basic and diluted EPS for 20x1.