Cook Company shows the following condensed income statement information for the year ended December 31, 2009:
Income before extraordinary gain ..........$30,000
Plus: Extraordinary gain, net of tax expense of $2,000 .....5,000
Net income .....................$35,000
The company declared dividends of $3,000 on preferred stock and $5,000 on common stock. At the beginning of 2009, 20,000 shares of common stock were outstanding. On July 1, 2009, the company issued 1,000 additional common shares. The preferred stock is not convertible.
Required
a. Compute the earnings per share.
b. How much of the earnings per share appears to be recurring?