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

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The correct answer is C.The earnings per share is calculated by dividing the net income by the number of outstanding shares. In this case, the net income is $630,000 and the number of outstanding shares is 50,000. Therefore, the earnings per share is $630,000 / 50,000 = $12.60.