Hornet Motors reported $635,000 net income for the current year. Beginning common shares outstanding were 120,000 . Hornet also had 10,000,6% nonconvertible, cumulative, $100 par value preferred shares outstanding for the entire year. No cash dividends were declared but Hornet did declare and distribute a 10% stock dividend on common shares on July 1 . Compute basic earnings per share. (Round your answer to the nearest cent.) A. $4.81 B. $4.79 C. $4.36 D. $5.27