On January 1 of the current year, Gonzales Company had 110,000 shares of $33 par common stock issued and outstanding and 19,000 shares of cumulative 6%, $115 par preferred stock issued and outstanding.

On March 1, Gonzales Company issued an additional 18,600 common shares and another 18,000 common shares on May 1. Net income for the year was $870,000.

Required:

Compute basic earnings per share of common stock. Round your answer to the nearest cent.