The Thomas Company's Net Income for the Year Ended December

question 2

Multiple Choice

The Thomas Company's net income for the year ended December 31 was $30,000. During the year, Thomas declared and paid $3,000 in cash dividends on preferred stock and $5,250 in cash dividends on common stock. At December 31, 36,000 shares of common stock were outstanding, 30,000 of which had been issued and outstanding throughout the year and 6,000 of which were issued on July 1. There were no other common stock transactions during the year, and there is no potential dilution of earnings per share. What should be the year's basic earnings per common share of Thomas, rounded to the nearest penny?

• A) $0.66
• B) $0.75
• C) $0.82
• D) $0.91

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Definitions:

Repolarization

The process of restoring the negative charge inside the cell membrane after a depolarization event.

Afterpotential

The change in membrane potential that follows the completion of an action potential in nerve cells.

Astrocytes

Star-shaped glial cells in the brain and spinal cord, involved in physical and nutritional support for neurons, and the repair and scarring process following central nervous system injury.

Blood-Brain Barrier

A selective semipermeable barrier formed by endothelial cells of the brain's capillaries that protects the brain from harmful substances and pathogens in the bloodstream.