Figero Inc. has $390,000 of income in 2020. During that same time it declared preferred dividends in the amount of $12,500. The following activities affecting common shares occurred during the year:

Jan. 1 120,000 common shares were outstanding

Aug. 1 Sold 35,000 common shares

Sep. 1 Issued a 10 percent common stock dividend

1. Calculate the weighted average number of common shares outstanding during the year.

2. Calculate earnings per share. Round to the nearest cent.