A company had net income of $250,000. On January 1, there were 12,000 shares of common stock outstanding. On May 1, the company issued an additional 9,000 shares of common stock. The company declared a $7,900 dividend on its noncumulative, nonparticipating preferred stock. There were no other stock transactions. The company had an earnings per share of:
a) $13.45
b) $13.89
c) $11.53
d) $26.90
e) Amount cannot be determined as problem does not state if there are any dividends in arrears