The Following Information Was Extracted from Smurm Corporation's 2006 Annual

question 38

Multiple Choice

The following information was extracted from Smurm Corporation's 2006 annual report:
$\begin{array}{lr}\text { Common stock }\\\text { Shares outstanding } 12 / 31 / 05 & 90 \text { million } \\\text { New shares issued } 4 / 1 / 06 & 10 \text { million } \\\text { Shares outstanding } 12 / 31 / 06 & 100 \text { million }\end{array}$

$\text { Preferred stock }$
$\$ 10$ par, $10 \%$ , convertible into 2 shares of common stock, shares outstanding $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$50 \text { million }$
1 million options, each to purchase one common share at $\$ 50$ per share

$\begin{array}{lr} \text { Average for year} &\$75\\ \text { Beginning of year } &\$70\\ \text {End of year } &\$78\\\\ \text { Preferred dividends paid}&\$50,000,000\\ \text { Net income for 2006}&\$350,000,000\end{array}$
-Diluted earnings per share for 2006 was:

• A)$3.52.
• B)$3.07.
• C)$2.00.
• D)$2.03.

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Definitions:

Chest

refers to the front surface of the body enclosed by the ribs, extending from the neck to the abdomen and housing organs such as the heart and lungs.

Ablation

Removal of cells or tissues, often through surgical means.

Cortex Removed

Describes a condition or experimental scenario where the outer layer of the cerebrum (cortex) is surgically removed or absent.

Maze Running

Maze running often relates to a method used in behavioral experiments to assess learning, memory, and spatial navigation skills in animals.