Maneesh 30 April 2020 at 16:13 PM

A company has net income for the current year of $120,000 and pays $5,000 in dividends to its preferred
shareholders and $20,000 in dividends to its common shareholders. The weighted average number of common
shares outstanding for the year is 1,500, and the weighted average number of preferred shares outstanding for the
year is 2,500. Basic earnings per share for this company for the current year, to the nearest cent, is
A)76.67
B) 40
C) 60
D)66.7