QUESTION #$5-$ CH $17$ EARNINGS PER SHARE $(13$ce$)$

EPS Corp. reported income before and after tax of $$14$ million and $$8\mathrm{.}4$ million respectively for year ended December $31,2023.$ The following

information is also available:

$1,350,000$ common shares were issued and outstanding at January $1,2023.$

A $12\%$ convertible $20$ year debenture with $$20$ million face value has been outstanding for a number of years. Related bond discount

amortization was $$25,000$ for the current year with interest payments made on April $1$ and October $1.$ Each $$1,000$ debenture is convertible

into $45$ common shares which is automatically adjusted for stock dividends and stock splits.

At the beginning of the year, $400,000$ stock purchase warrants to purchase $1$ common share each at $$15$ were outstanding. On September

$1,2023,60,000$ were exercised. The conversion rate is automatically adjusted for stock dividends and stock splits.

For a number of years, $$10$ million of $8\%$ cumulative preferred shares have been outstanding with no change during the current year.

On October $1,2022,$ $$12,000,000$ of $10\%$ non$-$cumulative convertible preferred shares $($ $$100$ par value$)$ were issued. The conversion rate is

$1$:$1$ and dividends of $$2\mathrm{.}50$ per share were declared in $2023.$ The conversion rate is automatically adjusted for stock dividends and stock splits

but the amount of dividends declared will not change.

On January $31,2024$ before releasing the $2023$ financial statements, the common shares were split $2$ new for $1$ old creating a bounce in the

post$-$split price of $$0\mathrm{.}58$ per share.

Common share prices of EPS Corp, during the year were as follows:

January $12023$

December $31,2023$

Average for the year

$$14$

$$20$

$$16$

REQUIRED

Calculate basic and diluted EPS for $2023$ rounding all calculations to $3$ decimals.