Candy Corporation Had Pretax Profits of $1

Multiple Choice

Candy Corporation had pretax profits of $1.2 million, an average tax rate of 34 percent, and it paid preferred stock dividends of $50,000. There were 100,000 shares outstanding and no interest expense. What were Candy Corporation's earnings per share?

A) $3.91
B) $4.52
C) $7.42
D) $7.59