Mary Company had the following outstanding stock securities held by its shareholders during the year:

1. 300,000 shares of common stock carrying an average market price during the year of \($42.00\) 

2. 6.0% convertible preferred, which had been sold at its par value of \($200.\) The preferred stock is convertible into two shares of common stock and 4,000 preferred shares are currently outstanding.

During the year, Mary Company earned net income after taxes of 6.2 million.

Required

Compute (a) basic earnings per share and (5) diluted earnings per share for Mary Company as of the end of the year. Ignore taxes.