Oregon, Inc. reported net income of $105,000. During the current year, the company had 5,000 shares of $100 par, 5% preferred stock and 10,000 of $5 par common stock outstanding. The company declared and paid all preferred dividends. Oregon's earnings per share is

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Earnings per Share = (Net Income - Preferred Dividends) / Average Number of Common Shares Outstanding = [$105,000 - (5,000 × $100 × 5% )] / 10,000 = ($105,000 - $25,000) / 10,000 = $80,000 / 10,000 = $8