(EPS: Simple Capital Structure) A portion of the combined statement of income and retained earnings of Seminole Inc. for the current year follows.

At the end of the current year, Seminole Inc. has outstanding 8,500,000 shares of $10 par common stock and 50,000 shares of 6% preferred.
On April 1 of the current year, Seminole Inc. issued 1,000,000 shares of common stock for $32 per share to help finance the casualty.
Instructions Compute the earnings per share on common stock for the current year as it should be reported to stockholders.

Income before extraordinary item Extraordinary loss, net of applicable income tax (Note 1) Net income Retained earnings at the beginning of the year $15,000,000 1,340,000 13,660,000 83,250,000 96,910,000 Dividends declared: On preferred stock-$6.00 per share On common stock-$1.75 per share Retained earnings at the end of the year $ 300,000 14,875,000 15,175,000 $81,735,000 Note 1. During the year, Seminole Inc. suffered a major casualty loss of $1,340,000 after applicable income tax reduction of $1,200,000.