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Johnson Company has net income of $10,000 and paid $1,000 cash dividends to its preferred shareholders and $1,750 cash dividends to its common shareholders. At

Johnson Company has net income of $10,000 and paid $1,000 cash dividends to its

preferred shareholders and $1,750 cash dividends to its common shareholders. At

the beginning of the year, there were 10,000 shares of common stock outstanding.

2,000 new shares were issued on July 1. Assuming a simple capital structure, what is

Johnsons basic EPS?

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