E16-20 EPS: Simple Capital Structure

On January 1, 2012, Bailey Industries had stock outstanding as follows.

6% Cumulative preferred stock $108 par value issued and outstanding 10,100 shares 1,090,800 Common stock, $11 par value, issued and outstanding 236,400 shares 2,600,400

To acquire the net assets of three smaller companies, Bailey authorized the issuance of an additional 261,600 common shares. The acquisitions took place as shown below.

Date of Acquisition

Shares Issued

Company A April 1, 2012


Company B July 1, 2012


Company C October 1, 2012


On May 14, 2012, Bailey realized a $142,800 (before taxes) insurance gain on the expropriation of investments originally purchased in 2000.

On December 31, 2012, Bailey recorded net income of $336,000 before tax and exclusive of the gain.

Assuming a 47% tax rate, compute the earnings per share data that should appear on the financial statements of Bailey Industries as of December 31, 2012. Assume that the expropriation is extraordinary. (Round answer to 2 decimal places, e.g. 2.55.)