26. [Earnings per share and book value per share, CFA adapted] As an analyst you have gathered the following informa- tion about a company for the year ended December 31. 1999: Net income was $10.5 million. " Stockholders' equity at December 31, 1999 was $100 million. Common stock dividends of $3.5 million were paid. 20 million shares of common stock were outstanding on January 1, 1999 The company issued 6 million new shares of common stock on April 1, 1999. Outstanding preferred shares: 5 million shares, each convertible into 15 common shares Par value $1 per share; liquidating value $5 per share Annual dividend $4 per share

a. Compute the company's basic eamings per share for 1999