The Foundational 15 (Algo) [LO16-2, LO16-3, LO16-4, LO16-5, LO16-6]

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Markus Companys common stock sold for $5.00 per share at the end of this year. The company paid a common stock dividend of $0.80 per share this year. It also provided the following data excerpts from this years financial statements:

	Ending Balance	Beginning Balance
Cash	$ 45,000	$ 42,000
Accounts receivable	$ 90,000	$ 65,000
Inventory	$ 72,100	$ 90,000
Current assets	$ 207,100	$ 197,000
Total assets	$ 766,000	$ 836,400
Current liabilities	$ 88,000	$ 82,500
Total liabilities	$ 196,000	$ 176,400
Common stock, $1 par value	$ 159,000	$ 159,000
Total stockholders equity	$ 570,000	$ 660,000
Total liabilities and stockholders equity	$ 766,000	$ 836,400

	This Year
Sales (all on account)	$ 1,045,000
Cost of goods sold	$ 606,100
Gross margin	$ 438,900
Net operating income	$ 300,000
Interest expense	$ 15,000
Net income	$ 199,500

Foundational 16-1 (Algo)

Required:

1. What is the earnings per share? (Round your answer to 2 decimal places.)