At January 1, 2025, Langley Company’s outstanding shares included the following.

280,000 shares of $50 par value, 7% cumulative preferred stock

900,000 shares of $1 par value common stock

Net income for 2025 was $2,530,000. No cash dividends were declared or paid during 2025. On February 15, 2026, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2025.

On April 1, 2025, 450,000 shares of common stock were sold for $10 per share, and on October 1, 2025, 110,000 shares of common stock were purchased for $20 per share and held as treasury stock.

Instructions

Compute earnings per share for 2025. Assume that financial statements for 2025 were issued in March 2026.