At December 31, 2013, MNO had 50,000 common shares issued and outstanding.On April 1, 2014, an additional 10,000 common shares were issued.MNO's net income for the year ended December 31, 2014, was $1,035,000.During 2014, MNO declared and paid $600,000 cash dividends on its nonconvertible preferred shares (the full year's requirement).The earnings per common share, rounded to the nearest cent, for the year ended December 31, 2014, should be:

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To calculate the earnings per common share (EPS), we first subtract the preferred dividends from the net income to find the earnings available to common shareholders. Then, we calculate the weighted average number of common shares outstanding during the year.Net income = $1,035,000Preferred dividends = $600,000Earnings available to common shareholders = $1,035,000 - $600,000 = $435,000For the weighted average shares, we have:- 50,000 shares for the entire year (12 months)- An additional 10,000 shares issued on April 1, which means these shares were outstanding for 9 months of the year.Weighted average shares = 50,000 + (10,000 * 9/12) = 50,000 + 7,500 = 57,500 sharesEPS = Earnings available to common shareholders / Weighted average sharesEPS = $435,000 / 57,500 = $7.5652, rounded to the nearest cent is $7.57.

At December 31, 2013, MNO Had 50,000 Common Shares Issued