The following information pertains to Wamser Company. Compute the earnings per share.
| Cash | $22,500 |
| Accounts receivable | $126,000 |
| Inventory | $75,000 |
| Plant assets (net) | $385,000 |
| Total assets | $608,500 |
| Accounts payable | $75,500 |
| Accrued taxes and expenses payable | $24,500 |
| Long-term debt | $48,500 |
| Common stock ($10 par) | $160,000 |
| Paid-in capital in excess of par | $88,500 |
| Retained earnings | $211,500 |
| Total equities | $608,500 |
| Net sales (all on credit) | $800,000 |
| Cost of goods sold | $600,000 |
| Net income | $81,000 |
Sonny Corporation has a simple capital structure of 100,000 shares of $1 par common stock and 20,000 shares of 5 percent preferred stock, $50 par. Both classes of stock were outstanding for the entire year. During the year, the company reported net income of $550,000 and declared dividends of $75,000 and $50,000 on the common stock and the preferred stock, respectively. Sonny s earnings per share for the year were:
(A) $4.25
(B) $4.58
(C) $4.75
(D) $5.00
(E) $5.50
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