Problem - Tamarisk Horizon Corp had the following items, all of which were outstanding throughout the entire fiscal year ending September 30, 2018:

• 860,000 common shares
• 300,000 $3 cumulative, no-par value preferred shares
• Options to purchase 100,000 common shares at $12 per share. The average market price of Tamarisk's common shares during the year was $21 per share. None of the options were exercised or expired during fiscal 2018
• 9% bond with a face value of $1,900,000, convertible to 49,000 common shares.

Tamarisk's net income for fiscal 2018 was $7,700,000, and its tax rate was 15%. Preferred dividends had been paid in all previous fiscal years.

Calculate Tamarisk's basic earnings per share for the year.