With Respect to the Computation of Earnings Per Share, Which

question 76

Multiple Choice

With respect to the computation of earnings per share, which of the following would be most indicative of a simple capital structure?

• A) Common stock, preferred stock, and convertible securities outstanding in lots of even thousands
• B) Earnings derived from one primary line of business
• C) Ownership interest consisting solely of common stock
• D) None of these

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Definitions:

Government Revenue

The money received by government from taxes and non-tax sources to finance government expenditures.

Market Size

The total volume or value of all sales within a given market over a specific period of time.

Consumer Surplus

The gap between the total price consumers are willing to pay for a good or service and the price they actually pay.

Producer Surplus

The difference between the amount producers are willing and able to supply a good for and the actual amount they receive (market price).