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Johnson Company has net income of $ 1 0,000 and paid $ 1 ,000 cash dividends to its preferred shareholders and $ 1,750 cash dividends to its common shareholders. At the beginning of the year, there were 1 0,000 shares of common stock outstanding. 2,000 new shares were issued on July 1 . Assuming a simple capital structure, what is Johnson's basic EPS?
NOTE: THIS IS analysis of financial statement subject.
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