Essay
Kramer Inc.had 95 million shares of common stock,1 million shares of 6%,$100 par,cumulative preferred stock,and 1 million shares of 8%,$100 par,noncumulative preferred stock outstanding at the end of 2015 and 2016.No dividends were declared or paid on common stock in either year.In 2016,a $3 million dividend was paid on the 6% preferred stock and a $4 million dividend was paid on the 8% preferred stock.Net income for 2016 was $300 million.The company's tax rate is 30%.
Required:
Compute basic earnings per share (rounded to 2 decimal places)for the year ended December 31,2016.
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