A certain company expects quarterly earnings of $0.80 per share of stock, half of which will be distributed as dividends to shareholders while the rest will be used for research and development. If earnings are greater than expected , shareholders will receive an additional $0.04 per share for each additional $0.10 of per share earnings. If quarterly earnings are $1.10 per share, what will be the dividend paid to a person who owns 500 shares of the company's stock? Choose the correct choice from the following answers:
A) $ 260	B) $ 96	C) $ 26	D) $ 120	E) $ 240

Rationale: "eps actual > eps expected . each gets and additional . 12 per share . thus . 52 * 500 - - > $ 260 answer is a"
Answer: A