or FINANCIAL ACCOUNTING The LOL Company had the following items in its capital structure at December 3 1, 2016: Preferred stock, cumulative, $8 par , $1 dividend, 20,000 shares authorized, 10,000 shares issued and outstanding (issued February 1, 2015) Common stock $5 stated value; 60,000 shares authorized, 40,000 shares issued (issued July l, 2015) Additional paid-in capital $40,000 Retained earnings $317,000 Treasury stock, acquired in 2015 for $7 per share $56,000 Net income for 2016 $138,000 LOL also had stock options outstanding since January 2, 2016, representing 14,000 potential shares. When the options are available to be exercised in 2019, the "strike" price will be $9 per share. The market values of the preferred and common shares at December 31, 2016, were $15 and $14, respectively. The cash that would hypothetically be collected with the exercise of the options would be sufficient for LOL to acquire 6,000 shares of treasury stock. What earnings per share would LOL report for 2016?