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Night Company had 500,000 ordinary shares issued and outstanding at December 31, 2019. During 2020, no additional ordinary share was issued. On January 1, 2020, Night issued 400,000 nonconvertible preference shares. During 2020, Night declared and paid P180,000 cash dividends on the ordinary shares and P150,000 on the nonconvertible preference shares. Net income for the year ended December 31, 2020 was P960,000.
Problem 1: What should be the 2020 earnings per ordinary share of Night Company?
a. P0.90
b. P1.26
c. P1.62
d. P1.92
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