Information from Ever Corporation's balance sheet is as follows:

Common stock, $10 par, 50,000 shares issued and oustanding

Preferred stock, $100 par, 6% cumulative stock, 1,000 shares issued and outstanding

During 2019, Ever Corporation has the following transactions: (They reported net income of $225,000)

Mar-1 Issued 10,009 shares of common stock for cash.

Apr-1 Re-acquired 2,000 shares of common stock as treasury stock.

Aug-1 Resold 1,000 shares of treasury stock for cash.

Sep-1 Declared and issued a 50% stock dividend on common stock.

1. Calculate the weighted average number of shares of stock that should be used to calculate the EPS for 2019. (see table)

2. Compute the basic EPS that would be disclosed.

Please show steps/provide explanations.

Actual Shares outstanding 50,000 Assumed Shares Outstanding Fraction of the year Equivalent Whole Units Weighted average shares outstanding