A Company Had 30,000 Shares of Common Stock Outstanding on January

Multiple Choice

A company had 30,000 shares of common stock outstanding on January 1, 2010. An additional 10,000 shares were sold and issued on June 1 and 20,000 more were sold and issued on December 1. Pre-tax income for the year was $320,000. The income tax rate was 40 percent. Earnings per share were:

A) $3.33.
B) $6.67.
C) $4.00.
D) $3.20.