At January 1 2013 xyz corporation had outstanding the following securities: $ 10

At January 1 2013 xyz corporation had outstanding the following securities: $ 1000000 5% cumulative convertible preferred shares $50 par; each share is convertible into 2 shares of common stock 7% convertible bonds $2000000 face value issued at par ($1000) per bond. Each bond is convertible into 30 shares of common stock $ 6000000 common stock $ 10 par value Additional information: 1. On April 1 2013 xyz purchased 100000 shares of its common stock treasury stock. 2. 06/30/13 xyz issued 4% stock dividend 3. On 10/31/13 50000 shares of treasury stock were sold 4. Common stock options outstanding as of 12/31/12 and exercisable in 2013 to purchase 40000 shares at an exercise price of $30 5. The market price of the stock peaked on 10/31/13 at $50 and on 12/31/13 the market price of the stock closed at $30; the average market price of stock during 2013 was $40 6. Net income for the year ended 12/31/13 was 1500000. 7. The income tax rate for 2013 was 40% Required: Calculate basic and diluted EPS