The profit of Wyatt Ltd for the financial year ending 31 December 20X1 was $6500000. The issued share capital at the end of the reporting period comprised 6 million fully paid ordinary shares and 2500000 cumulative redeemable preference shares.

Preference share dividends of $100000 were included in borrowing expense.

On 30 June 20X1, Wyatt Ltd issued 200000 fully paid ordinary shares for $1.75 cash each.

Required:

Calculate basic earnings per share.