Use the following information for the next two items: Sheeva Corp. had P600,000 net income in 2020, On January 1, 2020 there were 200,000 shares of common stock outstanding. On April 1, 20,000 shares were issued and on September 1, Sheeva bought 30,000 shares of treasury stock. There are 30,000 options to buy common stock at P40 a share outstanding. The market price of the common stock averaged P50 during 2020. The tax rate is 30%. During 2020, there were 40,000 shares of convertible cumulative preferred stock outstanding. The preferred stock is P100 par, pays P3.50 a year dividend, and is convertible into three shares of common stock. Sheeva issued P2,000,000 of 8% convertible bonds at face value during 2019. Each P1,000 bond is convertible into 30 shares of common stock. Note: Round off per share information to the nearest centavo. Based on the above information, answer the following: • What is the basic earnings per share for 2020? What is the diluted earnings per share for 2020?

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing t…