Problem

Kramer Inc. had 91 million shares of common stock, 1 million shares of 6%, $100 par, cumulative preferred stock, and 1 million shares of 8%, $100 par, noncumulative preferred stock outstanding at the end of 2015 and 2016. No dividends were declared or paid on common stock in either year. In 2016, a $2.6 million dividend was paid on the 6% preferred stock and a $3.6 million dividend was paid on the 8% preferred stock. Net income for 2016 was $296 million. The company's tax rate is 30%

Compute basic earnings per share for the year ended December 31, 2016.