Choice Corporation Had 100,000 Shares of Commons Stock Outstanding on January

question 25

Multiple Choice

Choice Corporation had 100,000 shares of commons stock outstanding on January 1, 2017. On January 1, 2017 Choice purchased 5,000 shares of its own common stock to fund a stock option plan for its executives. On December 31, 2017 Choice announced a 3 to 1 stock split. Choice's net income for 2017 was $400,000. How much should Choice report as earnings per share for 2017?

• A)$1.33.
• B)$1.40.
• C)$4.00
• D)$4.21

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Definitions:

Net Exports

The value of a country's total exports minus the value of its total imports. It is a component of GDP that indicates a country's trade balance.

Money Supply

The sum of all financial assets in an economy at a specific time.

Interest Rates

The cost of borrowing money or the return for investing, usually expressed as a percentage per annum.

Aggregate Demand

Represents the total demand for goods and services within a particular economy at a given overall price level and in a given time period.