On December 31, 2010, Dow Steel Corporation had 550,000 shares of common stock and 300,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 5% common stock dividend on May 15 and paid cash dividends of $400,000 and $75,000 to common and preferred shareholders, respectively, on December 15, 2011.

On February 28, 2011, Dow sold 55,000 common shares. In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. Dow's net income for the year ended December 31, 2011, was $2,200,000. The income tax rate is 40%.

Required:

Compute Dow's earnings per share for the year ended December 31, 2011.