Holzman Company reported net income for 2018 in the amount of $50,000. During 2018, Holzman declared and paid $2,000 in cash dividends on its nonconvertible preferred stock. Holzman also paid $10,000 cash dividends on its common stock. Holzmanhad 40,000 common shares outstanding from January 1 until 10,000 new shares were sold for cash on July 1, 2018. A 2-for-1 stock split was granted on July 5, 2018. What is the 2018 basic earnings per share (rounded to the nearest cent)? The answer is 0.53, just wondering why?