38. Company had net income of $2,500,000 for the year and paid $200,000 of preferred dividends. - 1,000,000 Shares outstanding on 1 January 20x - 200,000 Shares issued on 1 April 20x - (100,000) Shares repurchased on 1 October 20x - 1,100,000 Shares outstanding on 31 December 20x - An effective tax rate is 30\% Basic EPS