Archer Company had net income of $40,000 last year. The company has 5,000 shares of common stock and 2,500 shares of preferred stock outstanding. There was no change in the number of common or preferred shares outstanding during the year. Preferred dividends were $2 per share. The earnings per share of common stock was: A) $7.00 B) $8.00 C) $5.33 D) $7.50