Gamma plc had an issued share capital at 1 April 20X0 of:
● £200,000 made up of 20p shares.
● 50,000 £1 convertible preference shares receiving a dividend of £2.50 per share:
– These shares were convertible in 20X6 on the basis of 1 ordinary share for 1 preference share.
There was also loan capital of:
● £250,000 10% convertible loans:
– The loan was convertible in 20X9 on the basis of 500 shares for each £1,000 of loan;
– The tax rate was 40%.
Earnings for the year ended 31 March 20X1 were £5,000,000 after tax.

Required:
(a) Calculate the diluted EPS for 20X1.
(b) Calculate the diluted EPS assuming that the convertible preference shares were receiving a dividend of £6 per share instead of £2.50.