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Question 1: G Company reported net income for 2011 in the amount of $90,000. During 2011, G declared and paid $2,125 in cash dividends on its nonconvertible preferred stock. G also paid $10,000 cash dividends on its common stock. G had 40,000 common shares outstanding from January 1 until 10,000 new shares were sold for cash on April 1, 2011. What is 2011 basic earnings per share?
Group of answer choices
Option A) $1.64.
Option B) $1.85.
Option C) None of these is correct
Option D) $1.76
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