1. Selected financial information of Keiras Kites Inc. for the current year follows: (PLEASE SHOW ALL WORK)

Income from continuing operations $53,500,000

Income from discontinued operations, net of applicable income tax 6,250,000

Net income 59,750,000

Retained earnings at the beginning of the year 268,450,000

328,200,000

Dividends declared:

On preferred stock $2,000,000

On common stock$1 per share $21,500,000

-23,500,000

Retained earnings at the end of the year $304,700,000

At the end of the current year, Keiras Kites Inc. has outstanding 21,500,000 shares of $1 par common stock and 200,000 shares of 10%, $100 par preferred.

There were no changes in shares outstanding during the year.

Instructions:

Compute the earnings per share on common stock for the current year as it should be reported to stockholders