E16-19B (EPS: Simple Capital Structure) Selected financial information of Gray Plains Inc. for the current year follows. Income before extraordinary item $ 53,500,000 Extraordinary gain, net of applicable income tax 6,250,000 Net income 59,750,000 Retaine

E16-19B (EPS: Simple Capital Structure) Selected financial information of Gray Plains Inc. for the current year follows.

Income before extraordinary item                                            $ 53,500,000

Extraordinary gain, net of applicable

     income tax                                                                                    6,250,000

Net income                                                                                     59,750,000

Retained earnings at the beginning of the year                    268,450,000

                                                                                                        328,200,000

Dividends declared:

On preferred stock                            $ 2,000,000

On common stock—$1 per share  21,500,000                      23,500,000

Retained earnings at the end of the year                            $304,700,000

Note 1. During the year, Gray Plains Inc. took advantage of the current interest rates and called $125 million of long-term debt. The early retirement resulted in a gain of $10,000,000 before applicable taxes of $3,750,000.

At the end of the current year, Gray Plains Inc. has outstanding 21,500,000 shares of $1 par common stock and 200,000 shares of 10%, $100 par preferred. There were no changes in shares outstanding during the year.

Instructions

Compute the earnings per share on common stock for the current year as it should be reported to stockholders.