Dawson Corporation Had Profit of $120,000

Multiple Choice

Dawson Corporation had profit of $120,000. Dawson paid $20,000 in dividends to the preferred shareholders and $40,000 in dividends to the common shareholders. Dawson had 15,000 preferred shares and 50,000 common shares issued all year. Earnings per share is:

A) $1.20.
B) $2.00.
C) $1.85.
D) $2.40.