Interurban Company Began Operations on the First Day of the Year

question 76

Essay

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 6,000 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.)

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Definitions:

Instinctive Behaviors

Innate, fixed patterns of behavior in response to specific stimuli.

Myelination

The process of forming a myelin sheath around a nerve to allow it to transmit signals more rapidly.

Reticular Formation

A part of the brain involved in attention, sleep, and arousal.

Electrochemical

Pertaining to the processes that involve both electrical and chemical changes.