Walker Company has 15,000 shares of common stock outstanding during all of 2011. It also has two convertible securities outstanding at the end of 2011. These are:

Convertible preferred stock: 1,000 shares of 9%, $100 par, preferred stock were issued in 2010 for $140 per share. Each of the preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted.

Convertible bonds: Bonds with a face value of $100,000 and interest rate of 10% were issued at par on July 6, 2011. Each $1,000 bond is convertible inot 35 shares of common stock. To date, no bonds have been converted.

REQUIRED:
a. compute basic EPS
b. compute diluted EPS