Question 2 (10 marks) Eli Ltd., (Eli) a publicly listed company, needs to determine its EPS information for its December 31, 2019, financial statements. The following information is available to aid in the calculations: At the beginning of the year, the following shares were outstanding: 500,000 common shares 50,000 $5 cumulative preference shares 20,000 $3 non-cumulative preference shares Eli had after-tax earnings of $2,700,000 for the year ended December 31, 2019, and paid no dividends during the year. Eli had outstanding stock warrants enabling holders to purchase 50,000 common shares at an exercise price of $10. The average market price of the common shares during the year was $20. Stock options for 15,000 common shares have been outstanding for the entire year, and are exercisable at the option price of $28. On January 1, 2019, Eli had $2,000,000 face value 10% convertible bonds outstanding originally issued at par. Interest is payable annually on December 31. Each $1,000 worth of bonds is convertible into 70 common shares at the option of the holder. The tax rate for Eli is 40%.