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On January 1, Esther Pharmaceuticals had a balance of 10,000 shares of common stock outstanding. One June 1, the company issued an additional 2,000 shares of common stock for cash. A total of 5,000 shares of 6%, $100 par, nonconvertible preferred stock was outstanding all year. Esther's net income was $120,000 for the year. The earnings per share for the year were
a. $7.50
b. $8.06
c. $10.00
d. $10.75
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Christine Purelis
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