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Hominem Inc has 100,000 common shares outstanding. Earnings from continuing operations amounted to $1640,000 after tax) for the year ended 31 December 20X4. Hominem's income tax rate is 25%. The company had no discontinued operations. At the end of 20X4the market price of the company's common shares was $34. Hominem had these additional components in its capital structure at the end of the year 22,000 cumulative preferred shares outstanding since 20x2, each share is entitled to an annual dividend of $17 per share and is convertible into five shares of common after 30 June 20x9 . 4% debentures amounting to $640,000 were issued on 1 January 20X4. On this issue date, the bonds were recorded at $565,000. The debentures are convertible into 15 shares per $1,000. On 1 January 20X4, similar bonds with no conversion options had a market yield of 12%. Interest is payable annually Outstanding options permitting the holder to buy 5,000 common shares in 20x6 or later for $42 per share. . Required: 1. Compute basic EPS (Do not round Intermediate calculations and round your answer to 2 decimal places.) Base EPS 2. Compute diluted EPS, using a cascade if appropriate (Do not round intermediate calculations and round your answer to decimal places.) Diluted EPS

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