The accountant of Skywalker Corp. (this is a public company)reviewed the draft of the 2150 year end financial statements andhad found that it was missing essential information to find thecorrect calculations of Basic EPS and Diluted EPS.

On January 1, 2150, Skywalker Corp. started the year with20,000,000 common shares outstanding.

On February 28, issued 3,000,000 common shares.

On April 31, Skywalker Corp. bought back and retired 5,000,000common shares.

On December 1, Skywalker Corp. issued a 25% stock dividend.

Prior to 2150, the accountant knew that in the Shareholder'sEquity section of 2149, Common Shares had unlimited number ofshares authorized, with 10,000,000 shares issued andoutstanding.

Preferred shares, 17% cumulative, non-convertible shares,2,000,000 shares issued and outstanding.

The preferred shares have a par-value of $4 per share.

Other information that was noted:

Skywalker Corp. had 10,000 call options issued. Each option wasexercisable for one share at $450

The average market price of Skywalker Corp.'s common sharesduring 2150 was $650.

Skywalker Corp. had 11% convertible bonds. Each $1,000 bond isconvertible into 2 common shares.

The value of the bonds was $10,000,000.

Skywalker Corp. had accounting income (before taxes) of$42,500,000 and taxable income of 34,000,000. The tax rate forSkywalker Corp. was 30%.

Required:

1. Calculate the weighted average number of shares.

2. Calculate the basic earnings per share.

3. Calculate the diluted earnings per share.