Ramirez Corporation has 400,000 shares of common stock outstanding throughout 2007. In addition, the corporation has 5,000, 20-year, 7% bonds issued at par in 2005. Each $1,000 bond is convertible into 20 shares of common stock after 9/23/08. During the year 2007, the corporation earned $600,000 after deducting all expenses. The tax rate was 30%.
Instructions:
Compute the proper earnings per share for 2007.