q. 22

Kramer Inc. had 90 million shares of common stock, 1 million shares of 6%, $100 par, cumulative preferred stock, and 1 million shares of 8%, $100 par, noncumulative preferred stock outstanding at the end of 2017 and 2018. No dividends were declared or paid on common stock in either year. In 2018, a $2.5 million dividend was paid on the 6% preferred stock and a $3.5 million dividend was paid on the 8% preferred stock. Net income for 2018 was $295 million. The company's tax rate is 30%. Required: Compute basic earnings per share for the year ended December 31, 2018. (Round your answer to 2 decimal places.)