Assume the following facts are about a parent and its 80% owned subsidiary company:

	Parent	Subsidiary
Net income	$150,000	$80,000
Common shares outstanding	30,000	24,000 (30,000 = 80% owned by parent)
Convertible Preferred Stock	Dividends = $25,000 Convertible into 5,000 shares of common stock
Convertible Bonds		Interest expense after tax = $5,000 Convertible into 4,000 shares of common stock

What is the basic earnings per share?

Select one:

A. $6.00

B. $3.50

C. $6.30

D. $7.13