On December 31, 2009, Kallman Corporation had 160,000 shares of common stock issued and outstanding. On April 1, 2010, an additional 40,000 shares of common stock were issued for cash. During 2010, Kallman declared and paid dividends of $150,000 on its 20,000 shares of nonconvertible preferred stock. Net income for 2010 amounted to $400,000 . Kallman's earnings per share of common stock (rounded

to the nearest cent) for 2010 are
a. $1.25.
b. $1.32.
c. $2.00.
d. $2.11.


B

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