Question -
On December 31, 2015 Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of 8% noncumulative, nonconvertible preferred stock issues and outstanding. Dow issued a 4% 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, 2016.
On February 28, 2016 Dow sold 60,000 common shares. In keeping with its long-term share repurchase plan, 2,000 shares were retired on Jul 1. Dow's net income for the year ended December 31, 2016, was $2,100,000. The income tax rate was 40%
Required: Compute Dow's Earnings per share for the years ended December 31, 2016.