Question: During its fiscal year, a company had outstanding 600,000 shares of $6.50 preferred stock and 2,000,000 shares of common stock. The company's net income for the year was $19,550,000. The company also had granted stock options to employees for 200,000 shares of common stock during the fiscal year was $20 per share.
a. Calculate the company's basic earning per share.
b. Calculate the company's diluted earning per share.