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An analyst gathered the following information about a company whose fiscal year end is December 31.
Net income for the year was $23.7 million.
Preferred stock dividends of $3 million were paid for the year.
Common stock dividends of $6 million were paid for the year.
There were 10 million shares of common stock outstanding on January 1.
The company issued 6 million new shares of common stock on July 1.
The capital structure does not include any potentially dilutive securities.
Required:
Problem 1: Calculate the company's basic earnings per share.
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