A Business Has 75 Million Shares and Its Net Marketing

question 55

Multiple Choice

A business has 75 million shares and its net marketing contribution is $550 million.The other expenses,including interest and taxes,amount to $280 million.Calculate the earnings per share for the business.

• A)$2.4 per share
• B)$6 per share
• C)$1.2 per share
• D)$3.6 per share
• E)$4.8 per share

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Definitions:

Subsidiary

A company controlled by another company, termed as the parent company, usually through majority share ownership.

Disclosure

The process of providing financial and other significant information about a company's operations, financial condition, and management to stakeholders.

Fair Market Value

The cost at which an asset would be sold in an open market scenario, involving a buyer and a seller who are both willing to transact and are well-informed about the essential details.

Goodwill

An intangible asset that arises when a company acquires another for a price higher than the fair value of its net identifiable assets.