Center Street Transit began 20X6 with 1,800,000 shares of common stock outstanding. On May 1, 20X6, Center Street Transit issued 800,000 additional shares of common stock. 150,000 shares of common stock were reacquired on August 1, 20X6. Center Street Transit reported net income of $4,500,000 for the year ending December 31, 20X6. Center Street Transit paid $500,000 in common dividends during 20X6.
a) Calculate the weighted-average common shares outstanding for 20X6.
b) Calculate basic earnings per share for 20X6.
c) If Center Street Transit also had preferred stock outstanding, and declared and paid $455,000 in dividends on these shares during 20X6, calculate the revised amount for basic earnings per share.