For the year ended December 31 2017 Wabush Inc Wabush
For the year ended December 31, 2017, Wabush Inc. (Wabush) reported net income of $11,700,000. On December 31, 2016, Wabush had the following capital stock outstanding:
Preferred shares, no par, $2.50 annual dividend, cumulative, authorized 5,000,000 shares, and 1,000,000 shares outstanding $ 25,000,000
Common shares, no par, authorized: 150,000,000 shares; issued and outstanding: 75,000,000 shares 185,000,000
On June 30, 2017, Wabush repurchased 5,000,000 common shares for $7.50 per share.
Preferred dividends were paid during the year. No dividends in common shares were paid during the year.

Required:
a. Calculate Wabush's basic earnings per share for the year ended December 31, 2017.
b. How much of a dividend should Wabush's shareholders expect to receive in 2018?

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