Question #$8$: $30$ Points

EPS Inc. had net income of $$625,000$ in $2x.$ The company had $1,000,000$ shares of $$8$ par value common stock and $25,000$ shares of $10\%,$$$100$ par, preferred stock outstanding throughout the year. Each share of preferred stock is both cumulative and convertible into $5$ shares of common stock.

Compute the following for $2$ : $($show your work$)$

$\backslash$table$[[\backslash$table$[[($a$)$ The number of shares to be used in$],[$computing basic earnings per share.$]],],[($b$)$ The number of shares to be used in$,],[$computing diluted EPS.,$],[($c$)$ Basic earnings per share.,$],[($d$)$ Diluted earnings per share.,$],[,]]$