2A2V ON JANUARY 1, ESTHER PHARMACEUTICALS HAD A BALANCE OF 10,000 SHA...

82.

CSO: 2A2e

LOS: 2A2v

On January 1, Esther Pharmaceuticals had a balance of 10,000 shares of common stock

outstanding. On June 1, the company issued an additional 2,000 shares of common stock

for cash. A total of 5,000 shares of 6%, $100 par, nonconvertible preferred stock was

outstanding all year. Esther’s net income was $120,000 for the year. The earnings per

share for the year were

a.

$7.50.

b.

$8.06.

c.

$10.00.

d.

$10.75.