Flagstad Inc. presented the following data.

Net income ..............$2,500,000

Preferred stock: 50,000 shares outstanding,

$100 par, 8% cumulative, not convertible ....5,000,000

Common stock: Shares outstanding 1/1 ....750,000

Issued for cash, 5/1 ............300,000

Acquired treasury stock for cash, 8/1 .....150,000

2-for-1 stock split, 10/1

Instructions

Compute earnings per share.