Assume the following facts for the current year Net income
Assume the following facts for the current year:
Net income .................... $ 200,000
Common dividends ................. $ 20,000
Preferred dividends (The preferred stock is not convertible.) . $ 10,000
Common shares outstanding on January 1 ....... 20,000 shares
Common stock issued on July 1 ........... 5,000 shares
2- for- 1 stock split on December 31

Required
a. Compute the earnings per share for the current year.
b. Earnings per share in the prior year was $ 8.00. Use the earnings per share computed in (a) and present a two- year earnings per share comparison for the current year and the prior year.

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