Texas, Inc. has net income for 2019 of $555,000. At January 1, 2019, the company had outstanding 54,000 shares of $75 par value common stock and 10,000 shares of 6%, $150 par value cumulative preferred stock. On September 1, 2019, an additional 18,000 shares of common stock were issued.
What is the earnings per share for 2019 (to the nearest cent)?
A) $6.66
B) $7.75
C) $6.47
D) $9.26

Question

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The Answer of Texas, Inc. has net income for 2019 of $555,000. At January 1, 2019, the company had outstanding 54,000 shares of $75 par value common stock and 10,000 shares of 6%, $150 par value cumulative preferred stock. On September 1, 2019, an additional 18,000 shares of common stock were issued.
What is the earnings per share for 2019 (to the nearest cent)?
A) $6.66
B) $7.75
C) $6.47
D) $9.26