On December 31, 2015, Dow Steel Corporation had 680,000 shares of common stock and 38,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $480,000 and $77,000 to common and preferred shareholders, respectively, on December 15, 2016.

On February 28, 2016, Dow sold 54,000 common shares. In keeping with its long-term share repurchase plan, 4,000 shares were retired on July 1. Dow's net income for the year ended December 31, 2016, was $2,500,000. The income tax rate is 40%.

Required:Compute Dow's earnings per share for the year ended December 31, 2016