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XYZ Company had 200,000 shares of common stock outstanding on December 31, 2017. On July 1, 2018, XYZ issued an additional 42,000 shares for cash. On January 1, 2018, XYZ issued 12,000 shares of convertible preferred stock. The preferred stock had a par value of $100 per share and paid a 6% dividend. Each share of preferred stock is convertible into 8 shares of common. During 2018, XYZ paid the regular annual dividend on the preferred and common stock. Net income for the year was $250,000. Required:
Problem 1: Calculate XYZ's basic and diluted earnings per share for 2018. (Round your answers to 2 decimal places.)
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