Question
On 01-01-18, Smith had 480,000 shares of common stock outstanding. The following common stock-related transactions occurred during 2018: *On March 31, Smith issued 240,000 shares
On 01-01-18, Smith had 480,000 shares of common stock outstanding. The following common stock-related transactions occurred during 2018:
*On March 31, Smith issued 240,000 shares of its common stock.
*On September 1, Smith bought back 60,000 shares of its common stock.
*On November 30, Smith issued 30,000 shares of its common stock.
Throughout 2018, Smith had 10,000 shares of 4%, $100 par value, cumulative preferred stock. During 2018, Smith paid out $80,000 of dividends on its cumulative preferred stock and $25,800 of dividends on its common stock. Smith's net income for 2018 was $4,500,000. Smith's income tax rate is 25%. What will Smith report as basic EPS for the year ended 12-31-18?
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