Taft Corporation had after-tax income from continuing operations of \(\$ 6.7\) million for 2020. Taft also reported a \(\$ 1.23\) million after-tax loss on the disposal of its textile subsidiary. Taft uses a calendar-year reporting period. Taft's capital structure consists of the following.

- Preferred: 100,000 shares of \(\$ 100\) par, \(8 \%\) cumulative nonconvertible preferred issued in 2020 . No dividends were declared in the current year.

- Common: Outstanding January 1, 2020, 4,271,865 shares, \$1 par. Dividends of \(\$ 1.00\) per share were declared and paid in 2020. On July 1, 2020, a three-for-one stock split was declared and the shares were issued.

Required

a. What type of capital structure does Taft have (simple or complex)?

b. Compute relevant EPS amounts.

c. Show the EPS presentation for financial reporting.