At January 1, 2020, Skysong Company’s outstanding shares
included the following.
|276,000 shares of $50 par value, 6% cumulative preferred stock|
|940,000 shares of $1 par value common stock|
Net income for 2020 was $2,512,000. No cash dividends were declared or paid during 2020. On February 15, 2021, 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 2020.
On April 1, 2020, 408,000 shares of common stock were sold for $10 per share, and on October 1, 2020, 112,000 shares of common stock were purchased for $21 per share and held as treasury stock.
Compute earnings per share for 2020. Assume that financial statements for 2020 were issued in March 2021. (Round answer to 2 decimal places, e.g. $2.55.)
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