Downtown Development, Inc

question 96

Multiple Choice

Downtown Development, Inc.'s 2018 income statement lists the following income and expenses: EBIT = $700,000, interest expense = $100,000, and taxes = $168,000. Downtown has no preferred stock outstanding and 50,000 shares of common stock outstanding. What are its 2018 earnings per share?

• A) $14.00
• B) $12.00
• C) $10.64
• D) $8.64

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Definitions:

Economy

The system by which goods and services are produced, distributed, and consumed in a society.

Travel And Transportation

Refers to the movement of people or goods from one location to another, facilitated by various modes of transport such as cars, planes, trains, and ships.

Conflict Theory

A theory in sociology and social psychology that emphasizes the role of power and coercion in producing social order.

Division Of Labor

The allocation of different parts of a manufacturing process or task to different people in order to improve efficiency.