Fully vested incentive stock options exercisable at $64 per share to obtain 25,000 shares of common stock were outstanding during a period when the average market price of the common stock was $80 and the ending market price was $80. By how many shares will the assumed exercise of these options increase the weighted-average number of shares outstanding when calculating diluted earnings per share?

Hardaway Fixtures' balance sheet at December 31, 2017, included the following:

Shares issued and outstanding:
Common stock, $1 par	$	880,000
Nonconvertible preferred stock, $50 par		25,000

On July 21, 2018, Hardaway issued a 25% stock dividend on its common stock. On December 12 it paid $25,000 cash dividends on the preferred stock. Net income for the year ended December 31, 2018, was $2,800,000. Required:

Compute Hardaway's earnings per share for the year ended December 31, 2018. (Enter your answers in thousands.)