Use the Table for the Question(s) Below -Consider the Above Income Statement for CharmCorp

question 18

Multiple Choice

Use the table for the question(s) below
$\begin{array}{l}\text { Income Statement for CharmCorp: }\\\begin{array} { l r r } & 2011 & 2012 \\\text { Total sales } & 600 & 540 \\\text { Cost of sales } & - 532 & - 488 \\\hline \text { Gross Profit } & 68 & 52 \\\text { Selling, general, } & & \\\text { and administrative expenses } & - 36 & - 21 \\\text { Research and development } & - 4 & - 5 \\\text { Depreciation and amortisation } & - 5 & - 5 \\\hline \text { Operating Income } & 23 & 21 \\\text { Other income } & 1 & 5 \\\hline \text { Earnings before interest } & & \\\text { and taxes (EBIT) } & 24 & 26 \\\text { Interest income (expense) } & - 7 & - 7 \\\hline \text { Pretax income } & 14 & 19 \\\text { Taxes } & - 4 & - 5 \\\hline \text { Net Income } & 10 & 14\end{array}\end{array}$
-Consider the above Income Statement for CharmCorp. All values are in millions of dollars. If CharmCorp has 6 million shares outstanding, and its managers and employees have stock options for 1 million shares, what is its diluted EPS in 2012?

• A) $2.33
• B) $1.42
• C) $1.67
• D) $2.00

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Definitions:

Democratic Societies

Societies where government is based on the principle of elected individuals representing the population, typically ensuring that citizens have certain rights and freedoms.

Social Inequality

The presence of imbalanced chances and benefits for various social roles or statuses within a community or society.

Horticultural Society

A society primarily engaged in the cultivation of plants, fruits, and vegetables for their sustenance, typically using hand tools and simple techniques.

Public Support

The general backing or approval from the population towards an idea, person, or initiative.