Lew Company's Net Income Was $80,000 Last Year

Multiple Choice

Lew Company's net income was $80,000 last year. The company has 20,000 shares of common stock and 5,000 shares of $100 par value, 7% preferred stock outstanding. There was no change in the number of common or preferred shares outstanding during the year. The earnings per share of common stock was

A) $4.00.
B) $3.20.
C) $2.25.
D) $3.72.