Bowler Company Reports Net Income of $700,000

Multiple Choice

Bowler Company reports net income of $700,000. It declares and pays dividends of $100,000 for the year, one-half of which relate to the preferred shares. The weighted-average number of common shares outstanding during the year is 200,000 shares, and the weighted-average number of preferred shares outstanding during the year is 10,000 shares. Earnings per share for Bowler Company is (round your answer to the nearest cent) :

A) $3.18
B) $3.25
C) $3.30
D) $2.95.