The JVB Corporation Had 200,000 Shares of Common Stock and 10,000

question 52

Multiple Choice

The JVB Corporation had 200,000 shares of common stock and 10,000 shares of cumulative, $6 preferred stock outstanding during 2011. The preferred stock is convertible at the rate of three shares of common per share of preferred. For 2011, the company had a $60,000 net loss from operations and declared no dividends. JVB should report 2011 diluted loss per share of (rounded to the nearest cent)

• A) $(0.30).
• B) $(0.52).
• C) $(0.58).
• D) $(0.60).

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Definitions:

Financial Advantage

The benefit gained in financial terms, which could be through savings, profits, or reduced costs.

Outside Supplier

An outside supplier is an external entity that provides goods or services to a company, not tied by corporate affiliation.

Unit Product Cost

The total cost to produce one unit of a product, including direct materials, direct labor, and overhead.

Make or Buy

Decision-making process used by firms to choose between manufacturing a product in-house or purchasing it from an external supplier.