Earnings per Share

The 2018 balance sheet for Guthrie Corporation revealed the following information:

• Common stock, $10 par, 50,000 shares issued and outstanding
• Preferred stock, $100 par, 6%, cumulative stock, 1,000 shares issued and outstanding

During 2019, Guthrie reported net income of $225,000 and engaged in the following stock transactions:

Mar. 1		Issued 10,000 shares of common stock for cash.
Apr. 1		Reacquired 2,000 shares of common stock as treasury stock.
Aug. 1		Resold 1,000 shares of treasury stock for cash.
Sept. 1		Declared and issued a 50% stock dividend on common stock.

Required: 3. Compute the basic EPS that would be disclosed by Guthrie. Round your answer to 2 decimal places. Basic EPS