1. The Simmons Company started the year with 20,000 shares of common stock outstanding. On May 1, a 10 percent stock dividend was issued to the shareholders. Finally, on October 1, another 8,000 shares were issued to the public so that the company finished the year with 30,000 shares outstanding. If the company reported net income for the year of $100,000, what should be reported as basic earnings per share?