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Question 1: Georgetown Company's net income last year was $600,000. The company had 150,000 common shares and 60,000 preferred shares. There was no change in the number of common or preferred shares outstanding during the year. The company declared and paid dividends last year of $1.10 per common share and $0.60 per preferred share. The earnings per common share was closest to which of the following?
A) $2.90
B) $3.76.
C) $4.00.
D) $4.24.
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