Peine Co Had 300,000 Shares of Common Stock Issued and Outstanding

Multiple Choice

Peine Co. had 300,000 shares of common stock issued and outstanding at December 31, 2007. No common stock was issued during 2007. On January 1, 2008, Peine issued 200,000 shares of nonconvertible preferred stock. During 2008, Peine declared and paid $100,000 cash dividends on the common stock and $80,000 on the preferred stock. Net income for the year ended December 31, 2008 was $620,000. What should be Peine's 2008 earnings per common share?

A) $2.07
B) $1.80
C) $1.73
D) $1.47