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Red Company had 120,000 shares of ordinary share issued and outstanding at January 1, 2012. On January 2, 2012, the company issued 80,000 shares of preferred stock. During the year, the company declared and paid P420,000 cash dividend on the ordinary and P240,000 on the preference.
Problem 1: Net income for the year was P1,500,000. What should be the basic earnings per share in 2012?
a. 9.00 c. 12.50 b. 10.50 d. 15.75
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