On December 31, 2012, Dow Steel Corporation

On December 31, 2012, Dow Steel Corporation

On December 31, 2012, Dow Steel Corporation had 740,000 shares of common stock and 44,000 shares of 10%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 5% common stock dividend on May 15 and paid cash dividends of $540,000 and $83,000 to common and preferred shareholders, respectively, on December 15, 2013. On February 28, 2013, Dow sold 68,000 common shares. In keeping with its long-term share repurchase plan, 3,000 shares were retired on July 1. Dow’s net income for the year ended December 31, 2013, was $2,800,000. The income tax rate is 40%.Required:Compute Dow’s earnings per share for the year ended December 31, 2013. (Do not round intermediate calculations. Round your answer to 2 decimal places.)


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