At December 31, 2019, Grieger Corp. had 300,000 common shares outstanding. No common shares were issued during 2020; however, on January 1, 2020, Grieger issued 160,000 non-cumulative, non-convertible preferred shares. During 2020, Grieger paid cash dividends of $ 100,000 to the common shareholders and $ 60,000 to the preferred shareholders. Net income for calendar 2020 was $ 450,000. Basic earnings per share for 2020 would be

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Basic earnings per share (EPS) is calculated as (Net Income - Preferred Dividends) / Weighted Average Common Shares Outstanding. Here, it's ($450,000 - $60,000) / 300,000 = $1.30.