The Following Information Relates to the Capital Structure of Metcalf

question 58

Multiple Choice

The following information relates to the capital structure of Metcalf Corp.:

During 2011 Metcalf paid $90,000 in dividends on the preferred stock. Metcalf's net income for 2011 was $1,960,000 and the income tax rate was 40 percent. For the year ended December 31, 2011, the diluted earnings per share is

• A) $7.29.
• B) $7.43.
• C) $8.17.
• D) $8.29.