Arquandt Company's Net Income Last Year Was $550,000

Multiple Choice

Arquandt Company's net income last year was $550,000.The company had 150,000 common shares and 50,000 preferred shares outstanding.There was no change in the number of common or preferred shares outstanding during the year.The company declared and paid dividends last year of $1.20 per common share and $1.70 per preferred share.The earnings per common share was closest to which of the following?

A) $2.47.
B) $3.10.
C) $3.67.
D) $4.23.