A company has 200,000 shares of authorized common stock and 40,000 shares outstanding on January 1, Year One. The company issues 10,000 more shares of common stock on April 1 and another 25,000 shares on July 1 for a total of 75,000. The company had net income for Year One of $600,000. What was its earnings per share?

Select one:

a. $8

b. $10

c. $12

d. $13

e. $7