Computing EPS with Multiple Potentially Dilutive Securities

Spencer Inc.$\text{'}$s earnings of $\backslash$$$750,000$ reflect a tax rate of $25\backslash \%.$ During the year, Spencer had the following securities outstanding:

$168,000$ shares of common stock.

$7,000$ shares of $6\backslash \%,\backslash$$$100$ par, nonconvertible, cumulative preferred stock.

$7,000$ shares of $6\backslash \%,\backslash$$$100$ par, cumulative preferred stock, each convertible into $1\mathrm{.}75$ shares of common stock.

$700$ bonds, $\backslash$$$1,000$ face value, $\backslash (8\backslash \%\backslash )$ interest, each convertible into $30$ shares of common stock $($issued at face value$).$

$280$ bonds, $\backslash$$$1,000$ face value, $6\backslash \%$ interest, each convertible into $20$ shares of common stock $($issued at face value$).$

Required

a$.$ Compute basic EPS.

b$.$ Compute diluted EPS.

Note: Enter the earnings per share amounts in dollars and cents, rounded to the nearest penny.