Capital Consulting Company Had 400,000 Shares of Common Stock Outstanding

Essay

Capital Consulting Company had 400,000 shares of common stock outstanding on December 31, 2013. On that date, there were also 5,000 shares of $100 par, 6% noncumulative preferred stock outstanding. On March 1, 2013, the company's common stock split 3-for-1. On December 15, 2013, a preferred dividend was declared and paid in the amount of $25,000. Net income for 2013 was $3,000,000.
Required:
Compute basic earnings per share (rounded to 2 decimal places) for the year ended December 31, 2013.