QUESTION 8

The following data pertains to the McGuire Company:

Net income equals $15,000. 5,000 shares of common stock issued on January 1. 10% stock dividend issued on June 1. 1000 shares of common stock were repurchased on July 1. 1000 shares of 10%, par value $100 preferred stock, each convertible into 8 shares of common were outstanding the whole year.

What is the company's basic earnings per share (EPS)?

A. $1.00 per share.

B. $1.20 per share.

C. $2.50 per share.