At January 1, 2017, Ayayai Companys outstanding shares included the following.

307,000 shares of $50 par value, 7% cumulative preferred stock

909,000 shares of $1 par value common stock

Net income for 2017 was $2,543,000. No cash dividends were declared or paid during 2017. On February 15, 2018, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2017. On April 1, 2017, 478,000 shares of common stock were sold for $10 per share, and on October 1, 2017, 104,000 shares of common stock were purchased for $19 per share and held as treasury stock. Compute earnings per share for 2017. Assume that financial statements for 2017 were issued in March 2018.

Earnings per share _______