Monroe Company reported the following information for the year ended December 31, 2010: $\begin{array}{ll}\text{ Net income }& \$600,000\\ \text{ Preferred dividends declared and paid }& 60,000\\ \text{ Common dividends declared and paid }& 80,000\\ \text{ Average common shares outstanding }& 90,000\\ \text{ Ending market price per share }& 40\\ \text{ Net sales }& 4,100,000\end{array}$ Monroe's earnings per share for 2010 was

A) $6.67
B) $6.00
C) $5.11
D) $0.15

Earnings Per Share

A company's net income divided by the number of outstanding shares of its common stock.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operational costs, from its total revenue.

Preferred Dividends

Preferred dividends are payments made to preferred shareholders before any dividends are paid to common shareholders, usually fixed and based on a percentage of the par value of the shares.