Interurban Company Began Operations on the First Day of the Year

question 97

Multiple Choice

Interurban Company began operations on the first day of the year. On that day they issued 90,000 shares. On March 1 they issued 60,000 shares and on July 1, another 20,000 shares. On December 1, Interurban repurchased 6000 shares of outstanding shares. Compute basic EPS for the first year of operation if net income was $100,000. (Round number of shares to the nearest whole number, and your final answer to the nearest cent.)

• A) $1.11
• B) $0.67
• C) $1.67
• D) $0.80

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Definitions:

Agenda Setting

Agenda Setting refers to the ability of the media to influence the importance placed on the topics of the public agenda. Through its selection of coverage, the media can shape what people consider to be important issues.

Regional Newspaper

A newspaper that focuses on covering news, events, and topics relevant to a specific geographic region or community.

Agenda Setting

The process by which the media prioritize news stories and, in effect, determine the importance placed on these stories by the public.

Media Coverage

The reporting, analysis, and communication of news and information by various media outlets.