The Novak Corporation issued 10-year, $5,980,000 par, 6% callable convertible subordinated debentures on January 2, 2017

The Novak Corporation issued 10-year, $5,980,000 par, 6% callable convertible subordinated debentures on January 2, 2017. The bonds have a par value of $1,000, with interest payable annually. The current conversion ratio is 15:1, and in 2 years it will increase to 17:1. At the date of issue, the bonds were sold at 96. Bond discount is amortized on a straight-line basis. Novak’s effective tax was 35%. Net income in 2017 was $7,700,000, and the company had 1,845,000 shares outstanding during the entire year.

Compute both basic and diluted earnings per share. (Round answers to 2 decimal places, e.g. $2.55.) Basic earnings per share $

Diluted earnings per share $