On December 31, 2012, Andrews Company had outstanding 400,000 shares of common stock and 40,000 shares of 8% cumulative preferred stock (par $10).

February 28, 2013 issued an additional 36,000 shares of common stock.

September 1, 2013, 9,000 shares were retired.

A 10% stock dividend was declared and distributed on July 1, 2013.

At year-end, there were fully vested incentive stock options outstanding for 30,000 shares of common stock (adjusted fro the stock dividend), The exercise price was $18. The market price of the common stock averaged $20 during the year. Alos outstanding were $1,000,000 face amount of 10% convertible bonds issued in 2010 and convertible into 50,000 common shares (adjusted for the stock dividend). Net income was $900,000. The tax rate for the year was 40%.

REQUIRED: COMPUTE BASIC EARNINGS PER SHARE (ROUNDED TO 2 DECIMAL PLACES) for the year ended December 31, 2013.