On December 31, 2012, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $400,000 and $75,000 to common and preferred shareholders, respectively, on December 15, 2013.
On February 28, 2013, Dow sold 60,000 common shares. In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. Dow's net income for the year ended December 31, 2013, was $2,100,000. The income tax rate is 40%.
Required:
Compute Dow's earnings per share for the year ended December 31, 2013. (Do not round intermediate calculations. Round your answer to 2 decimal places.)