At December 31, 2011, the Murdock Company Had 150,000 Shares

At December 31, 2011, the Murdock Company had 150,000 shares of common stock issued and outstanding. On April 1, 2012, an additional 30,000 shares of common stock were issued. Murdock's net income for the year ended December 31, 2012, was $517,500. During 2012, Murdock declared and paid $300,000 in cash dividends on its nonconvertible preferred stock. The basic earnings per common share, rounded to the nearest penny, for the year ended December 31, 2012, should be

A) $3.00.
B) $2.00.
C) $1.45.
D) $1.26.

Correct Answer:

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