At January 1, 2014, Langley Company’s outstanding shares included the following.
375,000 shares of $51 par value, 7% cumulative preferred stock
834,000 shares of $1 par value common stock
Net income for 2014 was $3,260,000. No cash dividends were declared or paid during 2014. On February 15, 2015, 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 2014.
On April 1, 2014, 484,000 shares of common stock were sold for $10 per share, and on October 1, 2014, 110,000 shares of common stock were purchased for $23 per share and held as treasury stock.
Compute earnings per share for 2014. Assume that financial statements for 2014 were issued in March 2015.