Rye Company Has Provided the Following Information: • Number of Issued

question 75

Multiple Choice

Rye Company has provided the following information: • Number of issued common shares, 225,000
• Net income, $500,000
• Number of authorized common shares, 400,000
• Number of treasury shares, 25,000
What is Rye's earnings per share?

• A) $2.50
• B) $1.25
• C)$2.00
• D)$1.33

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Definitions:

Crowding Out

The phenomenon where increased government borrowing leads to higher interest rates, reducing private investment and spending in the economy.

Real GDP

The measure of a country's gross domestic product adjusted for inflation, reflecting the real value of goods and services produced.

Marginal Propensity

The ratio of change in consumption to the change in income, indicating how much of additional income will be spent or saved.

Discretionary Expansionary

Refers to fiscal or monetary policy actions initiated by a government or central bank to stimulate economic growth.