55 Exit Rudyard Corporation had 240,000 shares of common stock and 24,000 shares of 6%, $100 par convertible preferred stock outstanding during the year. Net income for the year was $540,000 and dividends were paid to both common and preferred shareholders. Rudyard's effective tax rate is 25% What is Rudyard's basic EPS? Multiple Choice $1.50. $2.85. $2.25