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An analyst gathered the following information about a company whose fiscal year-end is December 31:
• Net income for the year was $10.5 million.
• Preferred stock dividends for $2 million were declared and paid for the year.
• Common stock
dividends of $3.5 million were paid for the year.
• There were 20 million shares of common stock outstanding on January 1, 2014.
• The company issued 6 million new shares of common stock on April 1, 2014.
• The capital structure
does not include any potentially dilutive convertible securities, options, warrants, or other contingent securities.
Required:
What would be the company’s basic earnings per share for 2014?
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