At December 31, 2009, Hansen Corporation Had 50,000 Shares of Common

Multiple Choice

At December 31, 2009, Hansen Corporation had 50,000 shares of common stock and 5,000 shares of 6%, $100 par cumulative preferred stock outstanding. No dividends were declared or paid in 2009. Net income was reported as $200,000. What is basic EPS?

A) $4.00.
B) $3.40.
C) $3.64.
D) $4.02.