Stamping began the current year with

450,000

common shares outstanding and issued an additional

90,000

shares on

September 1.

The firm has

$11,500,000,

2.5 %

convertible bonds on

June 30 (i.e., $287,500

coupon interest annually), which are convertible into

329,000

shares of common stock. The firm issued the bonds at par and did not convert any during the current year. It also had

$1,160,000

par value, 5%

nonconvertible, noncumulative preferred stock outstanding for the full year and declared dividends for the current year. The company is subject to a 30 %

effective tax rate and net income is

$3,700,000.

Requirement

Based on this information, compute basic and diluted earnings per share for the current year.

Calculate the basic earnings per share (EPS) for the current year. (Round the EPS to the nearest cent, $X.XX.)

Basic EPS for the current year is $