Question 2 (5 points) Harris Pilton Inc. has 5,000 shares outstanding on January 1. The company issued 2,000 new shares on May 1, repurchased 3,000 shares on August 1, and issued a 30% stock dividend on July 1. On December 1, the company issued 1,000 new shares. Net income is $50,000 and the firm has 500 shares of 5%, nonconvertible, noncumulative preferred stock in issue. No dividends were declared for the period.

Instructions Compute basic earnings per share for the period.