Exercise 16-18

Flagstad Inc. presented the following data.

Net income	$2,500,000
Preferred stock:50,000shares outstanding,$100 par,8% cumulative, not convertible	5,000,000
Common stock: Shares outstanding 1/1	750,000
Issued for cash, 5/1	300,000
Acquired treasury stock for cash, 8/1	150,000
2-for-1 stock split, 10/1

Compute earnings per share.(Round answer to 2 decimal places, e.g. $2.55.)

Earnings per share

$