Getaway Travel Company Reported Net Income for 2009 in the Amount

Multiple Choice

Getaway Travel Company reported net income for 2009 in the amount of $50,000. During 2009, Getaway declared and paid $2,000 in cash dividends on its nonconvertible preferred stock. Getaway also paid $10,000 cash dividends on its common stock. Getaway had 40,000 common shares outstanding from January 1 until 10,000 new shares were sold for cash on July 1, 2009. A 2-for-1 stock split was granted on July 5, 2009. What is the 2009 basic earnings per share?

A) $.42.
B) $.47.
C) $.53.
D) $.56.