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:

Atoll

A ring-shaped coral reef, island, or series of islets surrounding a lagoon, often found in tropical ocean waters.

Meteoroid

Solid object in interplanetary space; distinguished from asteroids by a smaller size.

Volcanic Island

An island formed from the accumulation of material erupted through the crust from a volcanic vent, typically found in oceans.

Subduction

The mechanism in which one tectonic plate slides beneath another, descending into the mantle where the plates come together.