chapter 19

question 3

On December 31, 2020, Dow Steel Corporation had 740,000 shares of common stock and 44,000 shares of 10%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 5% common stock dividend on May 15 and paid cash dividends. of $540,000 and $83,000 to common and preferred shareholders, respectively, on December 15,2021. On February 28, 2021, Dow sold 68,000 common shares. In keeping with its long-term share repurchase plan, 3,000 shares were retired on July 1. Dow's net income for the year ended December 31,2021 , was $2,800,000. The income tax rate is 25%. Required: Compute Dow's earnings per share for the year ended December 31, 2021. (Do not round intermediate calculations. Enter your answers in thousands. Round "Earnings per share" answer to 2 decimal places.)