Selected financial information of Gray Plains Inc. for the current year follows.

During the year, Gray Plains Inc. took advantage of the current interest rates and called $125 million of long-term debt. The early retirement resulted in a gain of $10,000,000 before applicable taxes of $3,750,000.
At the end of the current year, Gray Plains Inc. has outstanding 21,500,000 shares of $1 par common stock and 200,000 shares of 10%, $100 par preferred. There were no changes in shares outstanding during the year.

Instructions
Compute the earnings per share on common stock for the current year as it should be reported tostockholders.

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$53,500,000 Income before extraordinary item Extraordinary gain, net of applicable income tax Net income Retained earnings at the beginning of the year 6,250,000 59,750,000 268,450,000 328,200,000 Dividends declared: On preferred stock On common stock-$1 per share 2,000,000 21,500,000 23,500,000 Retained earnings at the end of the year 304,700,000