Response to the following problem:
Glow-Rite Lighting Company had earnings for 2006 of $740,000. The company had 125,000 shares of common stock outstanding during the year. In addition, the company issued 50,000 shares of $100 par value preferred stock on January 5, 2006. The preferred stock has a dividend of $6 per share. There were no transactions in either common or preferred stock during 2006.
Determine the basic earnings per share for Glow-Rite.