On december 31, 2017, dow steel corporation had 770,000 shares of common stock and 47,000 shares of 9%, noncumulative, nonconvertible preferred stock issued and outstanding. dow issued a 5% common stock dividend on may 15 and paid cash dividends of $570,000 and $86,000 to common and preferred shareholders, respectively, on december 15, 2018. on february 28, 2018, dow sold 68,000 common shares. in keeping with its long-term share repurchase plan, 4,000 shares were retired on july 1. dow's net income for the year ended december 31, 2018, was $2,950,000. the income tax rate is 40%. required: compute dow's earnings per share for the year ended december 31, 2018.

9. tax types: taxes are classified based on whether they are applied directly to income, called direct taxes, or to some other measurable performance characteristic of the firm, called indirect taxes. identify each of the following as a “direct tax,” an “indirect tax,” or something else: a. corporate income tax paid by a japanese subsidiary on its operating income b. royalties paid to saudi arabia for oil extracted and shipped to world markets c. interest received by a u.s. parent on bank deposits held in london d. interest received by a u.s. parent on a loan to a subsidiary in mexico e. principal repayment received by u.s. parent from belgium on a loan to a wholly owned subsidiary in belgium f. excise tax paid on cigarettes manufactured and sold within the united states g. property taxes paid on the corporate headquarters building in seattle h. a direct contribution to the international committee of the red cross for refugee relief i. deferred income tax, shown as a deduction on the u.s. parent’s consolidated income tax j. withholding taxes withheld by germany on dividends paid to a united kingdom parent corporation