A Company Has Net Profit of $365 000 for the Current

question 15

Multiple Choice

A company has net profit of $365 000 for the current year. It paid its required preference dividend of $17 500 and had no other share transactions during the year. The average number of ordinary shares issued during the year was 69 500. What is the earnings per share?

• A)$5.25
• B)$1.00
• C)$4.37
• D)$5.00

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Definitions:

Conformity

The process of aligning one's attitudes, beliefs, and actions with the norms of a group or the expectations of society.

Compliance

The act of conforming, submitting, or adapting one's behavior to match with demands, requests, or regulations from others, often used in a legal or regulatory context.

Lowball Procedure

The lowball procedure is a psychological technique used in persuasion and sales where an initially favorable offer is made, only to have terms less favorable to the buyer introduced later.

Expensive Extra Equipment

Items or tools that are not included with the basic package of a product and are often high in price.