A Company Had 20,000 Shares of Common Stock Outstanding on January

Multiple Choice

A company had 20,000 shares of common stock outstanding on January 1, 2001. On October 110,000 shares of non-cumulative preferred stock were issued as a stock dividend. No cash dividends were paid or declared in 2007 and 2007 net income was $450,000. Earnings per share (rounded to nearest cent) :

A) $15.00.
B) $22.50.
C) $20.00.
D) $30.00.