Designs, Inc. had 4,000 shares of $7, $100 par preferred stock and 50,000 shares of common stock outstanding throughout 2009. During 2009, Designs declared a dividend of $7 per share on its common stock. Compute earnings per share for 2009 if Designs' income statement showed net income of $630,000.

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The preferred stock dividend is $7 per share * 4,000 shares = $28,000. The common stock dividend is $7 per share * 50,000 shares = $350,000. The total dividends are $28,000 + $350,000 = $378,000. The earnings per share are $630,000 - $378,000 = $252,000 / 50,000 shares = $12.04 per share.