A Company Reported Net Income of $6 Million

question 61

Multiple Choice

A company reported net income of $6 million.During the year the average number of common shares outstanding was 3 million.The price of a share of common stock at the end of the year was $5.There were 400,000 shares of preferred stock outstanding on average and no dividends were declared and the preferred stock is noncumulative.
-Use the information above to answer the following question.The EPS is approximately:

• A) $0.40
• B) $1.76.
• C) $1.86.
• D) $2.00.

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Definitions:

Extrinsic Rewards

Rewards given to an individual that are external to the job itself, such as pay, bonuses, or other tangible benefits.

Self-Actualization Need

The desire for self-fulfillment and realizing one's own potential, as the highest level in Maslow's hierarchy of needs.

Maslow's Hierarchy

A psychological theory proposed by Abraham Maslow that suggests human needs are arranged in a hierarchy from basic physiological needs to self-actualization.

Management Executive

A Management Executive is a senior-level position responsible for directing, controlling, and overseeing the operations and strategy of an organization or a specific department.