American Health Systems has 6,300,000 shares of stock outstanding and will report earnings of $18 million in the current year. The company is considering the issuance of 1,100,000 additional shares, which can only be issued at $25 per share.

a. Assume that American Health Systems can earn 10 percent on the proceeds. Calculate earnings per share. (Do not round intermediate calculations and round your answer to 2 decimal places.)

Earnings per share __________________