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.
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?