Answer:
- The earnings per share of common stock is closest to
D. $11.41.
Explanation:
To find the Price-Earning Ratio first, it's necessary to deduct from the Net Income the part corresponding to Preferred Stock,
which is , $2,532,000 - (200,000*1,25= $250,000) = $2,282,000
Then we calculate the Earning/Share Ratio : $2,282,000/200,000 = 11,41
Shares of Common stock outstanding    200.000     
Shares of Preferred stock outstanding    200.000*$1,25 = $250.000  
NET INCOME Available    $2,282,000  = $ 2,532,000  - $250,000