On January 1, 2007, UMB Corporation had 1,000,000 shares of common stock outstanding. On March 1, the corporation issued 150,000 new shares to raise additional capital. On August 1, the corporation declared and issued a 2-for-1 stock split. On November 1, the corporation purchased on the market 600,000 of its own outstanding shares. The tax rate is 40%.

Additional information: Net Income $3,100,000

Required:

(a) Compute the weighted average number of shares outstanding during the year.

(b) Compute the basic earnings per share for 2007. (Round to the nearest penny.)