In 2014, Benfer Corporation Reported Net Income of $210,000

question 94

Multiple Choice

In 2014, Benfer Corporation reported net income of $210,000. It declared and paid common stock dividends of $24,000 and had a weighted average of 70,000 common shares outstanding. Compute the earnings per share to the nearest cent.

• A) $2.66
• B) $2.10
• C) $2.70
• D) $3.00

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Definitions:

Aggregate Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in an economy.

Aggregate Demand Curve

A graph showing the relationship between the total quantity of goods and services demanded across all sectors of an economy and the price level, all else being equal.

Long-Run Aggregate Supply Curve

A graphical representation that shows the relationship between the overall price level and the quantity of goods and services produced by an economy when all resources are fully employed.

Cyclical Unemployment

The variation in unemployment caused by the ups and downs of economic cycles, including recessions and expansions.