Question 4.14: For the year ended 31 December 2006, Angler Products had net...

For the year ended 31 December 2006, Angler Products had net income of $2,500,000. The company declared and paid $200,000 of dividends on preferred stock. The company also had the following common stock share information:

Shares outstanding on 1 January 2006                                  1,000,000
Shares issued on 1 April 2006                                                      200,000
Shares repurchased (treasury shares) on 1 October 2006  \underline{(100,000)}
Shares outstanding on 31 December 2006                             1,100,000

1. What is the company’s weighted average number of shares outstanding?
2. What is the company’s basic EPS?