Reference no: EM131909796

During 2015, Arbon Valley Company has 500,000 shares of par $1 common stock, 20,000 shares of convertible, 4% cumulative preferred stock (par value is $50), $600,000 of 7% convertible bonds, $800,000 of 9% convertible bonds, and 120,000 stock options for employees to purchase shares of common stock for $20 per share. The preferred stock, bonds, and options were outstanding through the entire year. Dividends were not paid on the preferred stock during the year. The tax rate is 40%. Each share of preferred stock can be converted into 4 shares of common stock. Each $1,000 bond (both issues) can be converted into 12 shares of common stock. Each option can be used to purchase one share of common stock. No preferred stock or bonds were converted during the year and no options were exercised. The average market price of the common stock for the year 2015 was $24. Net income for the year was $2,500,000. [Round to the nearest penny, for example: 1.44]. What is the basic earnings per share for 2015? $_______________ What is the diluted earnings per share for 2015? (round to the nearest penny, for example: 1.44) $_______________