Westminster, Inc. has net income of $185,000. At January 1, the company had outstanding 54,000 shares of $25 par value common stock and 10,000 shares of 6%, $50 par value cumulative preferred stock. On September 1, an additional 18,000 shares of common stock were issued.
What is the earnings per share (to the nearest cent)?
A) $2.22
B) $2.58
C) $2.25
D) $2.05
E) None of the above

Question

Quizplus · Accepted Answer

The Answer of Westminster, Inc. has net income of $185,000. At January 1, the company had outstanding 54,000 shares of $25 par value common stock and 10,000 shares of 6%, $50 par value cumulative preferred stock. On September 1, an additional 18,000 shares of common stock were issued.
What is the earnings per share (to the nearest cent)?
A) $2.22
B) $2.58
C) $2.25
D) $2.05
E) None of the above